THE APPRENTICESHIP LEVY

Introduced 06 April 2017

Logistics apprenticeships are a reliable way of growing your own talent in your own workplace and helping to introduce younger drivers to the logistics industry.

 

Benefits that apprenticeships contribute towards include:
  • Improving productivity in the workplace
  • Increasing employee satisfaction
  • Reducing staff turnover
  • Reducing recruitment costs


WHAT IS AN APPRENTICESHIP?
  • A job accompanied by a skills development programme
  • The apprentice gains experience and relevant knowledge by being in the workplace
  • You can be an apprentice at any age
 
WHAT IS THE APPRENTICESHIP LEVY?
  • The Apprenticeships Levy is a payment collected from employers with a pay bill over £3 million each year

WHY HAS THE APPRENTICESHIP LEVY BEEN INTRODUCED?
  • Skills gaps exist throughout the UK 
  • With an ageing workforce, the logistics industry has a skills gap of 42,000+ lorry drivers
  • Bridging the skills gaps with apprenticeship training will help enable Britain's economy to survive outside the EU
  • The Levy will also raise additional funds to improve the quality and quantity of apprenticeships
 
HOW IS THE  APPRENTICESHIP LEVY CALCULATED?
  • Employers not connected to another company or charity have an apprenticeship levy allowance of £15,000pa
  • The apprenticeship levy is charged at 0.5% of a companies annual wage bill
  1. 0.5% x (wage bill) = £0.00
  2. - £15,000 (The levy allowance)
  3. = Annual levy payment
 
LEVY AND NON-LEVY PAYERS?
  • Levy payers Wage bill +£3m
  • receive a further government contribution of 10% towards funding apprenticeships
  • Non-levy payers  Wage bill less than £3m
  • only pay 10% towards funding apprenticeships the remaining 90% is funded by government
 
HOW IS THE LEVY PAID?
  • The levy payment is taken at the same time as monthly PAYE
  • Levy payers will paid levy payments since 09 April 2017
 
HOW TO USE APPRENTICESHIP FUNDS?
  • Training and assessment of apprentices - The apprentice can be an existing employees or a new member of staff
 
WHAT CAN'T YOU SPEND LEVY FUNDS ON?
  • Wages, travel, management, work placements, licences to practice, brokerages
 
APPROVED TRAINING PROVIDERS?
  • Apprenticeship training can only be provided through Government approved training providers
 
DEADLINE FOR SPENDING LEVY FUNDS?
  • Once the funds enter your ASA, you have 24 months to direct the money towards Government approved training providers
  • If funds aren't used with 24 months they are removed from your account and put back into the general pot
 
MERLIN ACADEMY
  • Merlin Academy is a government approved main training provider of logistics apprenticeships
 
LOGISTICS APPRENTICESHIPS
 
Enquire now about MERLIN ACADEMY APPRENTICESHIPS
t: +44 (0)1536 533697
 
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