Funding Explained
There are a wide range of funding options available for you to take advantage of when it comes to hiring your apprentice.
Our team is here to help you talk through your options and work through applications.
The Apprenticeship Levy
The Apprenticeship Levy is a form of tax that large employers pay towards funding a greater number of high-quality apprenticeships. Levy-paying employers can transfer a percentage of their payments to a smaller business, helping them overcome financial barriers to offering apprenticeships.
There are several ways you can access The Apprenticeship Levy as an SME.
For Levy Employers
If you have a wage bill of more than £3m, then the cost of training will be funded through your Levy pot, which our team of expert advisers can help you with.
There may also be opportunities for employers to maximise their levy pot and meet corporate social responsibility objectives through targeted levy spend. We can guide you through this as well.
For Non-Levy Employers
If you do not have a wage bill of more than £3m or over, you will only need to pay 5 per cent of the training costs and the Government will pay the remaining 95 per cent.
Additional Support
Employers may also be entitled to additional benefits including:
£1000 for each apprentice recruited who is 16-18 years old
£1000 for each apprentice recruited who is 19-24 and has an education, health, and care plan
Employers with fewer than 50 employees who recruit a 16–18-year-old will not only receive the £1000 incentive but their 5 per cent training costs are waived
Employers are exempt from paying National Insurance contributions for all apprentices under the age of 25 if their earnings are below the higher tax rate
Funding Grants
Government Grants
The UK Government provides a range of grants to cover apprenticeship costs, including:
If your business employs fewer than 50 people and your apprentice is 16-18 years old, the government will cover all apprenticeship training costs.
For all employers, of any size, that recruit an apprentice that is 16-18 years old the government will provide a grant of £1,000 to support the costs of taking on an apprentice.
Our team of expert advisors are here to help guide you through your financial options. Get in touch with us today, and one of our friendly team will be happy to help you.
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