HCSS Budgeting launches new Apprenticeship Levy calculator | HCSS Education

Call us - 0845 345 3300 | Customer Support 0845 340 4546

Brought to you by Access Group Access Group Logo

HCSS Budgeting launches new Apprenticeship Levy calculator

Budgeting demo

From today, academies, local authorities (LAs) and multi-academy trusts (MATs) with payrolls over £3 million will be forced to pay a 0.5% Apprenticeship Levy on their wage bill.

HCSS Education’s budget planning tool, HCSS Budgeting, has just been updated with a new Apprenticeship Levy calculator.

The new function within the software works out how much schools and academies will need to pay. It can also model the impact of the levy on budget scenarios for up to five years in the future.

This will help education leaders make more informed decisions based on accurate forecasts, removing any nasty surprises.

The way the levy is applied differs slightly for standalone academies, MAT academies and maintained schools.

Below we have published guidance on how different types of schools should use the new calculator.

You can find out more about the levy in HCSS Education’s Apprenticeship Levy guide for schools.

Apprenticeship Levy calculator for standalone academies

The new calculator allows standalone academies to calculate their future liability under the levy and apply changes to their budget scenarios.

Academies can enable the Apprenticeship Levy by going into the ‘Other Settings’ section of the budgeting software.

From here, schools will be able to view the levy percentage and levy allowance. For standalone academies these should be left at their default values of 0.5% and £15,000. Here too, users will be able to edit the CFR section for where they want the levy to appear.

Once the Apprenticeship Levy has been enabled, HCSS Budgeting users will be able to add the levy to specific budget forecasts by navigating to the staffing section of a scenario and pressing the ‘Add Apprenticeship Levy’ button.

HCSS Budgeting Apprenticeship Levy costs in a standalone academy

 

 

 

 

 

 

 

 

 

 

Apprenticeship Levy calculator for maintained schools

The method is slightly different for LA maintained schools.

For maintained schools and voluntary controlled schools, the LA is usually the employer. This means that any LA with a total pay bill over £3 million is liable to pay the Apprenticeship Levy.

However, LAs may pass the cost of the levy back onto their maintained schools, even if the school’s individual pay bill does not exceed £3 million.

This is an arrangement that schools will need to discuss with their LA.

If the LA indicates that they will pass the full weight of the Apprenticeship Levy onto a school, then the school can still model the impact of the levy in HCSS Budgeting.

To activate the Apprenticeship Levy under these circumstances, go to the ‘Other Settings’ section of HCSS Budgeting, click ‘Enable Apprenticeship Levy’ and change the levy allowance from £15,000 to £0.

Once the Apprenticeship Levy has been enabled on the budget planning tool, users can add the levy to budget forecasts by navigating to the staffing section of a scenario and pressing the ‘Add Apprenticeship Levy’ button.

Apprenticeship Levy calculator for academies within MATs

In academy MATs, like in LA maintained schools, the overarching trust is generally the employer. So any MAT with a total pay bill of over £3 million will be required to pay the levy.

Again, the MAT may choose to pass the cost of the Apprenticeship Levy onto individual academies within the trust.

Academies will need to negotiate how much they will pay with their MAT.

If the MAT indicates that they will pass the full weight of the Apprenticeship Levy onto individual academies, the academies can still model the impact of the levy in HCSS Budgeting.

As with LA maintained schools, academies in MATs will activate the levy by going to ‘Other Settings,’ clicking ‘Enable Apprenticeship Levy’ and changing the levy allowance from £15,000 to £0.

Once the Apprenticeship Levy has been enabled, users can add the levy to forecasts by navigating to the staffing section of a budget scenario and pressing the ‘Add Apprenticeship Levy’ button.