How to spend your levy in the new financial year
The start of a new financial year means one thing – it's time for budget planning.
The apprenticeship levy has only been in force for 12 months, so when it comes to training budgets, large companies are in a much better position than this time last year.
Companies can log in to their NAS accounts, see how much they've contributed, and see how much the Government has contributed in their 10% top up. This means companies have a much better idea of their training budgets and can start spending their levy wisely.
You can use last year's stats to predict how much levy you'll have to spend this year – but remember, this is just an estimate. Levy payments are collected by HMRC every month, so they'll fluctuate depending on your wage bill.
Research the options
Many businesses have never hired apprentices before and don't know how they'd fit into their training strategy. If this is you, do a little research into apprenticeships. The standards are now designed by employers themselves and courses are available up to higher or degree level – in everything from computer programming to law.
Use it or lose it
Levy funds only stay in your DAS account for 24 months, so you've got to use it, or lose it. If you haven't touched your funds yet, you've got the rest of the year to spend it. Each monthly contribution has its own expiration date, so don't blow it all in one – you have time to budget, plan and spend.
Companies big and small are already taking advantage of the apprenticeship levy, so ask them for their tips and tricks. They'll explain how the whole process works and how it's impacted their business. It's also a great way to partner with other organisations in your area.
To make the levy work for you, you'll have to be a little creative, but it'll pay off dividends. Take a look at these guys: Google is using the levy to recruit their next generation of software engineers – while Mischon de Reya is using their funds to hire accounting apprentices. It's an effective way to hire talent and mould the kind of leaders you want to drive your business in the future.
Ready to join us in levy-land? See how you can make the most of your levy in 7 simple steps.
This article includes research and opinion sourced by OneFile at the time of publication. Things may have changed since then,
so this research is to be used at the reader's discretion. OneFile is not liable for any action taken based on this research.