Levy calculator will help firms plan for apprenticeship cost » SMEInsider

Levy calculator will help firms plan for apprenticeship cost

An apprenticeship training provider has developed an apprenticeship levy calculator to help firms to work out how much the tax will impact their business.

The Skills Company, part of the not-for-profit Manchester Growth Company, has launched the easy-to-use calculator tool to enable businesses to work out how much they will pay, and is also working with companies on planning how to invest the money to maximise their workforce needs.

 

Taken by surprise

The apprenticeship levy is being introduced as part of the government’s plans to raise £3bn annually in order to create three million apprenticeship starts by 2020.

Businesses with a wage bill of £3 million or more will have to pay 0.5 per cent of their payroll costs towards the levy, from April 2017.

Jayne Worthington, managing director of The Skills Company, said: “Although it had been widely trailed, the announcement of the introduction of the apprenticeship levy in the Chancellor’s autumn statement seemed to take many employers by surprise.

“We wanted to give employers something quick and easy to use so they could see what effect the levy would have on them.

 

‘Significant cost’

“For employers who will have to pay the levy, it could be a significant cost, and they will have to pay whether they employ apprentices or not, so it makes real business sense for them to get the maximum benefit that they can from that investment.

“We have already started working with many businesses to plan their strategy on where to invest the levy, looking at talent and workforce development needs and planning apprenticeship recruitment and training in line with this.

“Businesses that take this early step will definitely be ready for the levy and maximise the investment potential and ultimate return.  The calculator that we’ve developed will help companies to take that first step towards getting the most out of their investment.”

To view the Apprenticeship Levy Calculator, click here.