Apprenticeship Levy

Apprenticeship Levy

From April 2017 the way the government funds apprenticeships in England changed. Businesses with a wage bill of over £3 million now have to pay an Apprenticeship Levy. The levy is charged at a rate of 0.5% of your annual pay bill.

Here are the facts:

  • The levy was introduced in April 2017
  • Any business in any sector private or public with a payroll bill of £3 million and over has to pay into the levy
  • It is set at a rate of 0.5% of your total payroll
  • Employers do not pay the first £15,000 of the Levy
  • You will receive 10% top up to the Levy through your digital account. For every £1 you put in you can spend £1.10
  • The Levy is collected on a monthly basis based on live HMRC payroll data
  • You will be able to access funding for apprenticeships through a new Digital Apprenticeship Service account

How do you recover the cost?

You can spend the levy on an apprenticeship framework/standard delivered by an approved apprenticeship provider. This is beneficial for supporting new employees and developing existing staff.

How we can help

  • We will help you Understand the Levy and its Implications
  • Help your business maximise the benefits, and avoid the pitfalls, of the new system
  • Develop and Deliver bespoke Apprenticeship Programmes which meet your business needs
  • Ensure continuity of your Existing training strategy
  • Seek alternative funding if your Levy pot is Insufficient

Contact us for further information

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