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BIS Publish Guidance on Apprenticeship Levy

27/04/2016

April 27 2016 Cathie Clarke Build UK News

BIS Publish Guidance on Apprenticeship Levy

buildukBIS Publish Guidance on Apprenticeship Levy

BIS has published guidance on how the Apprenticeship levy will work when it is introduced on 6 April 2017, the first in a series of guidance notes for employers. The guidance is easy to read and confirms the following points:

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  • The levy will be calculated and paid monthly through the PAYE process
  • Levy funds can only be spent on apprenticeships
  • At first only those that pay the levy will be able to access funding from the apprenticeship levy fund
  • In England the amount each employer will receive will be the levy they have paid plus a 10% top up from the Government
  • Employers will have up to 18 months to spend each levy payment made
  • Training providers and assessment organisations will have to be approved and registered to receive payments from the apprenticeship levy fund.

Build UK understand that the Construction Leadership Council presented a strong case to BIS and Nick Boles for the next CITB levy consensus process to take place in 2017 rather than being brought forward to 2016, which had been suggested by BIS. If agreed, this will require some kind of transition arrangement as construction employers liable for both the CITB and Apprenticeship levy have clearly stated that they do not support paying the full cost of the two levies.