The Apprenticeship Levy is just a few weeks away, but as many as 1 in 3 companies still aren’t sure what it means for them. Over the last few weeks, we’ve offered a fair bit advice and businesses are slowly starting to realise that the Apprenticeship Levy is not simply a compulsory business tax. It could open up a wealth of untapped opportunity and in this article, we want to show you how the Apprenticeship Levy can help to future-proof your business.
You should of course know by now, that from April, you will need to pay a compulsory tax in the form of the Apprenticeship Levy. How much will depend on the size of your organisation’s wage bill. This tax money goes into a Digital Apprenticeship Service (DAS) account, which you can access and spend on training for you apprentices. What many people don’t realise is that this money doesn’t have to be spent on new and young apprentices – it can also be spent training your current staff. What that means is that you can think of the money your organisation has paid as part of the apprenticeship levy, as a ring-fenced training budget to upskill your existing workforce.
So what does that mean in facts and figures? Well, if you’re an organisation with around 2,000 employees – this additional ring-fenced training budget will amount to approximately ¼ million pounds. With this level of training budget, you’ll be able to put a long-term learning and development plan in place to help meet your organisation’s strategic objectives for years to come. The apprenticeship levy gives you the budget to look at the skills you’ll need in 1,3 or even 5 years’ time and start putting a plan in place now to make sure your existing employees are able to meet those needs. Outside of the obvious benefits of having a more skilled employee base, there’s a wealth of other reasons why taking this approach is good for business. Investing in training improves morale, lowers staff attrition rates and increases productivity. That translates to lower operational costs and increased profits.
Of course, you could choose to ignore the apprenticeship levy altogether, but that doesn’t mean you won’t have to pay for it. As we mentioned earlier – it’s a compulsory tax. Ignoring it simply means you’ll have to pay for it but won’t claim anything back. If you’re an organisation with a workforce of 2,000 – you’re essentially choosing to throw ¼ million pounds down the drain when instead, you could be using it to gain a competitive advantage and future proof your business for years to come.
And if it all sounds a little complicated and you’re not sure how to plan for this new development, then come and talk to us. The London College of Apprenticeship Training is a leading apprenticeship provider. We offer a wealth of training opportunities for both new and existing employees. We work with companies to create a bespoke Apprenticeship Levy Blueprint. This bespoke plan will show you how to make the most of your ring-fenced training budget, to upskill your workforce and meet your future organisational objectives.
There’s a great deal of planning to do to get this right and the Apprenticeship Levy begins in just a couple of weeks so every second counts. If you would like to learn more about creating an Apprenticeship Levy Blueprint, or have questions about the apprenticeship levy itself, contact us today on 020 3651 4747 or fill in the contact form on our website and we’ll be in touch shortly.