If you run a levy-paying company, you may have enough funds to manage your workforce. In this article, we are going to talk about how much funding you can receive from the government to pay for apprenticeship. Read on to find out.
Basically, the apprenticeship training you will get depends upon the Levy funds you received from the government and the apprenticeship you have chosen. There is a max funding band against each apprenticeship, which outlines the apprenticeship cost.
You can use the funds provided by the government pay for apprenticeship assessment and training. However, if the cost of training and assessment exceeds the available maximum funds, you will have to pay the balance from your own pocket.
It is important to keep in mind that the available funds cannot be used for other costs, such as launching apprenticeship programs, work placement programs, travel costs, licenses to practice, and wedges.
You can use the PAYE process for reporting and paying your levy to HM Revenue & Customs (HMRC). You will receive levy funds after you have created an apprenticeship service account.
After your declaration of levy to HMRC, you will receive the funds in your account on a monthly basis.
If you have insufficient funds in your account for training and assessing apprentices in a particular month, the government requires that you share the the rest of cost details.
For that month, you will sign a “co-investment” contract with the government. You will need to pay 5% of the outstanding balance for that particular month, and the rest of 95% will be paid by the government.
As an employer, the government can also pay you an incentive payment for recruiting and apprenticing. Given below is the description of the funds you will receive.
If you have fewer than 50 employees and you choose to recruit apprentices aged 16 to 18 years, you want to receive the incentive amount of £1,000. However, the rest of your 5% training costs will be waived.
You don’t have to pay NI contributions for your apprentices below 25 years old as long as they don’t earn more than the higher tax rate.
If you are a non-levy paying employer, you will need to share the training and assessment cost with the government, which is known as “co-investment”. In this case, the government will cover the apprenticeship training cost and the government will cover the rest of 95% of the cost, up to the maximum funding band.
In short, the government does pay for apprenticeship costs in some cases as long as you are eligible.