The Government has launched an online service to make it easier for SMEs to receive funds from the apprenticeship levy. The new service will simplify the way employers and smaller businesses transfer and access funds respectively, the Government said.
“Levy-paying employers can advertise their funding pledges on a dedicated Government website page, allowing a wider range of small businesses to browse and apply for available funds.
Afford Bond Director, Jeff Atkinson said: “Businesses can pledge 25% of the apprenticeship levy they pay to another organisation. The apprenticeship levy amounts to 0.5% of an employer’s annual pay bill if their pay bill is worth over £3 million. We’ve found it very useful over the past 12 months ourselves when recruiting new talent.”
The portion of the levy they can dedicate to another organisation is based on the business’s previous financial year’s apprenticeship levy funds.
Apprenticeships and Skills Minister Gillian Keegan said: “I’m pleased we’re making it easier for smaller and medium-sized businesses to offer apprenticeships, which will unleash exciting new opportunities for apprentices and ensure that every business can benefit from the productivity and skills of apprentices.”
As an employer, you have to pay Apprenticeship Levy each month if you:
– have an annual pay bill of more than £3 million
– are connected to any companies or charities for Employment Allowance purposes and have a combined annual pay bill of more than £3 million
The rules for connected companies are the same for Apprenticeship Levy and Employment Allowance.
If you need expert accountancy guidance on where to allocate you levy funds, please get in touch using the Contact Us form on our website at www.affordbond.com or Tel: Nantwich Accountants on 01270 623731 or Wilmslow Accountants Tel: 01625 416380.