Use it or lose it! Start spending your Apprenticeship Levy funding

Following National Apprenticeship Week (5-9 March) celebrations, Mitchells is calling on Apprenticeship Levy payers to – ‘use it or lose it’.

Levy funds will expire 24 months after they enter your digital account unless you spend them on apprenticeship training.

The Government introduced the Levy in April 2017 as part of its promise to create 3 million new apprentices by 2020.

Employers with a pay bill of over £3 million must now pay 0.5% of it into a digital account. On top of this all levy-paying companies receive a 10 per cent top up on their monthly levy contributions.

The money in the account can then be used to fund apprentice training within the organisation. However, Funds that are not used after 18 months of entering your digital account are lost.

Andrew McDaid, Partner at Mitchells Chartered Accountants and Business Advisers commented: “The Apprenticeship Levy shouldn’t be seen as a tax, but more of an investment into developing your workforce, and apprenticeships do work – for both the individual and the business.

“Mitchells is very much an advocate of apprenticeships and we use them to recruit and develop young members of our team with a long term view on their future with the firm.”

Whether you’re a Levy payer or not, apprentices can bring a number of benefits to businesses of all sizes, including:

  • Improved bottom line – The average apprenticeship completer increases business productivity by £214 per week.
  • Bridging the skills gap – 82% of employers take on apprentices to build the skills capacity within their businesses.
  • Improved staff morale – 96% of apprentice employers say they are beneficial to their business.

For young people, the benefits of an apprenticeship are also far reaching. Connie Shaw is a Level 4 AAT Apprentice at Mitchells and is using an apprenticeship to fast track her route to becoming a Connie Shaw - Accounts Apprenticequalified Chartered Accountant.

She said: “I wanted to get straight into working and becoming an accountant. As an individual I am a practical learner. Working in practice helps me with my exams as I can relate to real life scenarios.”

The fact that she would be able to avoid university debt was a big deciding factor for Connie. “I also get paid to study on the job which means I am not building up University debt.”

Connie works in our Small Business team alongside our Small Business Manager Laura Pain.

Connie added: “I really like the fact that I work Monday-Friday. I enjoy office life. I get day release to study AAT qualifications at college. My working environment, job roles and work that I am doing really helps alongside my study.”

The former Birley Community College pupil plans to continue her studies to become a chartered accountant, using the skills and experience she gains to progress at Mitchells.

Find out more about becoming an apprentice at Mitchells here.

To find out more about how Mitchells can help access grants to help you invest with people development and training in your business, please contact us on 01246 274 121.

* Source: National Apprenticeship Service ‘Employer Guide to Apprenticeships’

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