pprenticeship levy is a new government measure that will affect employers in every sector who pay employees £3m or more per year. The intention of the new charge is to foster more apprenticeships and encourage increased efficiency.
It is hoped that by 2020 many more apprenticeships will be offered to school leavers and people looking for a new career. The plan is to create traineeships with a higher calibre than current apprenticeships.
In essence the apprenticeship levy will give power to employers who proactively engage with employees to increase their skills. This new initiative has led to the removal of Class 1 National Insurance Contributions for anyone below 25 who will be allowed to up to earn £827 weekly without paying any NI.
If you are an employer who is likely to be affected by the Apprenticeship Levy we recommend discussing how you will be affected with one of our payroll professionals.
If you would like to find out all the details about the Apprenticeship Levy you can have a read about it here.