If your business has an annual wage bill of over £3 million, you’ll be legally bound to pay the Apprenticeship Levy. Here are six steps to help you make the most of your levy.
The levy amounts to a 0.5% tax on your wage bill which can only be spent on approved apprenticeships. To maximise the potential benefits of degree apprenticeships and get the most out of your contributions, read our essential checklist.
1. Calculate the value of funds available
You can use the HMRC’s basic PAYE tool to help you calculate how much you need to contribute in levy payments.
Then it’s important to understand how you can spend your levy funds. What would be the most effective way of using these funds to meet your business objectives?
2. Identify which skillsets would be most relevant to your business strategy
Where will your organisation be in five years’ time? Which skills should you be reinforcing or putting in place? This could mean developing existing employees or taking on new apprentices.
No matter your decisions, make sure they complement your overarching strategy for the long term.
3. Partner with a quality training provider
Your choice will depend on your specific business needs, and it’s important to work with a provider that understands them.
In partnership with professional bodies, we’ve worked with some of the biggest names in industry and public services, and at the very forefront of degree apprenticeships.
We understand that you need a training programme that fits around your business, so don’t hesitate to get in touch.
4. Review your training
If you don’t already have apprenticeship delivery, now’s the time to start.
If you have an existing programme, review and look at potential new areas to maximise the return on your levy spend.
Remember, if you’re paying the Levy Tax you’ll want to ensure you’re getting your money’s worth. If you’re not, you’ll want to enjoy the benefits of the Government paying for 90% of your training scheme.
You can sponsor either a new recruit, or a current employee at any stage in their career, helping them develop and giving you a highly skilled employee.
5. Assess impact
Spending time to assess the impact that apprenticeships have on your organisation will identify which departments and qualifications will deliver the greatest benefits.
Your responsibilities include providing apprentices with mentors, giving them enough time to study and making sure their work and their apprenticeship complement each other effectively.
6. Further development
Having identified which departments and qualifications work best, you’re be in the perfect position to recruit more apprentices or place existing staff on the programme, enabling you to maximise your return on the levy.
Got a question?
Our Degrees at Work team will provide expert advice on how to use degree apprenticeships to your best advantage. They’ll guide and support you at every stage of the process of setting up and implementing your degree apprenticeship programme.