Non Levy Payers can reserve funding for up to 10 more apprentices this year
10/06/2022
Are you a small/medium-sized employer? You can now reserve funding for up to 10 apprentices to shape your workforce this financial year.
This is great news for non-levy paying employers, as it means you can recruit up to 10 more apprentices until April 2023.
How do I know if I pay the apprenticeship levy?
As an employer, you have to pay Apprenticeship Levy each month if you:
- Have an annual pay bill of more than £3 million
- Are connected to any companies or charities for Employment Allowance purposes and have a combined annual pay bill of more than £3 million.
If you don’t pay the apprenticeship levy, you can now reserve funding for up to 10 apprentices you plan to hire until April 1st 2023.
Why do I have to reserve apprenticeship funding?
For employers who do not pay the Apprenticeship Levy, reservations give certainty that the government will pay for apprenticeship training while also managing the availability and affordability of apprenticeship funding for all employers.
You must reserve apprenticeship funding before you begin hiring apprentices to ensure training costs are covered.
What does this mean for my business?
This means that from 1st June 2022, you can now plan to hire up to 10 more apprentices for your business, regardless of any apprentices you have already hired, with most of your apprenticeship training costs funded by the government.
How much will I have to pay to hire an apprentice?
You’ll pay 5% towards training costs, with the rest funded by the government, you’ll also pay for the apprentice’s wages, which start at £4.81ph for any apprentice in the first year of their apprenticeship, going up to National Minimum Wage for Apprentices aged 18+ after the first year.
How do I reserve apprenticeship funding?
If you’re looking to hire apprentices in 2022, you can reserve apprenticeship funding by speaking to your Apprenticeship Training Provider. Don’t have one? Drop us an email at hello@busybees.com and we’ll see how we can help.
