Apprenticeship Levy 

What is the Apprenticeship Levy?

The Apprenticeship Levy is set to be introduced by the Government in April 2017. It will be paid at a rate of 0.5% of an employer’s wage bill, and will be paid through Pay As You Earn (PAYE).

Why has the Levy been introduced?

The Apprenticeship Levy has been introduced to help raise £3 billion per year to meet a target of three million new ‘high quality’ Apprenticeships by 2020.

Who has to pay the Apprenticeship Levy?

All companies receive an allowance of £15,000 for the levy, equivalent to 0.5% of a £3 million pay roll. Any company with a paybill over £3 million will be liable to pay the levy.

Example One: Employer of 250 employees, each with a gross salary of £20,000
Paybill: 250 x £20,000 = £5,000,000
Levy sum: 0.5% x £5,000,000 = £25,000
Allowance: £25,000 - £15,000
Annual Levy Payment = £10,000

Example Two: Employer of 100 employees, each with a gross salary of £20,000
Paybill: 100 x £20,000 = £2,000,000
Levy sum: 0.5% x £2,000,000 = £10,000
Allowance: £10,000 - £15,000
Annual Levy Payment = £0

How will I claim the training from my levy payments?

Employers in England will be able to reclaim their contributions and choose training providers via a voucher system, through the new Digital Apprenticeship Service.

What are the benefits of the Levy for employers?

- Apprenticeship content will be exactly what you need
- Ensure you are getting value on your investment when working with your training provider
- Access to higher and degree level Apprenticeships
- Ensure that at the end of the Apprenticeship your Apprentice is competent in the role you need them to do .