The apprenticeship levy is due to come into force in April 2017 and will require the employers with a payroll bill of more than £3m pay 0.5% of this to HMRC on a monthly basis. There are no exceptions to this for employers who currently pay a levy to CITB or ECITB.
In England and Wales, details of how this will work in practice are already at an advanced stage. This will allow employers who employ apprentices to use the apprenticeship levy funds they pay plus a 10% Government incentive payment for the training of apprentices within defined parameters, via digital accounts.
In Scotland there is not as yet, any detail as to how employers will be able to claim back and use the money paid by way of the apprenticeship levy. The Scottish Government commenced a consultation with employers on 13 July 2016. The outcome of the consultation is not expected until the autumn, around the time of the Scottish Government’s spending review decisions.
Scottish Engineering will update members as more information becomes available.