The simplified version of the Apprenticeship Levy is an investment tax paid by UK employers with a pay bill over £3 million each year to the Government through PAYE to support the creation new apprenticeships, business productivity and employment. The amount each business pays depends upon their overall annual salary bill.
The Apprenticeship Levy is charged at 0.5% of the employer’s annual pay bill and was introduced in April 2017 as part of the Government’s apprenticeship reforms.
Companies that spend more than £3 million on their wage bill are levy paying.
of your annual wage bill contributed into
the apprenticeship levy each year.
of your apprenticeship levy funds can be transferred to other employers to support their training costs.
Time limit to spend your allowance on recruiting new apprentices or training existing staff
Our teams are apprenticeship experts and are equipped to ensure you get the most out of your apprenticeship levy funded apprenticeships.
We work with you to identify skills gaps and explore the range of apprenticeships available, and how they can help you achieve business growth.
Our knowledgeable Account Managers and Tutors understand recent regulatory changes, the most efficient delivery methods and how to deliver on training timescales - all with added social value.
We understand the financial, legal, and quality and compliance landscape for apprenticeships.
Our team can provide a package that enables both the recruitment of apprenticeships and the skills of existing employees to flourish - through apprenticeship funded training.
We work in partnership with you to explore the right apprenticeship standards for your business, budget and skills requirements.
Doug Bentley, Head of Product Development
Apprenticeship Levy-paying employers must use the Apprenticeship Service to:
Apprenticeship levy employers are able to share more of their funding across their supply chain, supporting SME businesses to employ apprentices. Up to 25% of unused apprenticeship funds can put to good use whilst helping smaller businesses boost their growth and recruitment plans.
The cost of the training will cover the cost of the apprentice training, assessment and certification against an approved apprenticeship standard.
Funding bands will be set by the Government which limit the amount of levy funds you can spend on training.
If you have used all of your funds in your Apprenticeship Service account you will be required to co-invest a small proportion of funding towards the cost of your apprenticeship training. This is 5% with the Government contributing 95% of the costs.
Apprenticeship levy funds can only be used for apprenticeship training and assessment with an approved training and assessment provider.
You can use your funds to training existing staff as well as recruiting apprentices into your business. Your funds can be used at all levels within your business, not just entry level.
Download our free eBook guide to the Apprenticeship Levy