What is the Apprenticeship Levy?

Page updated with latest Apprenticeship Levy information 1st June 2017. Details are still subject to change. For more information on the Apprenticeship Levy you can also visit the GOV.UK website


Apprenticeship LevyThe Apprenticeship Levy requires all employers in any sector, operating in the UK, with a pay bill over £3 million each year, to pay a Levy charged at a rate of 0.5% of annual payroll. The Apprenticeship Levy is paid to HM Revenue and Customs (HMRC) through the Pay as You Earn (PAYE) process and will be made available the employer to use as funding for IT apprenticeships.

Employers will be able to access their funding for IT apprenticeships through a new Digital Apprenticeship Service account in England. Separate arrangements will be in place in Scotland, Wales and Northern Ireland. You will be able to register to create an account from January 2017.

Need to Register or Manage your Levy Account? click here

Your Levy funds available to spend in England will be adjusted to reflect your proportion of English based employees. The government will apply a 10% top-up to your available Levy funds to invest in apprenticeship training in England.

Your Levy funds will expire 24 months after they enter your digital account unless you spend them on apprenticeship training. The system is set up to spend the “oldest” funds first.

IT apprentices who were enrolled onto an IT apprenticeship with NowSkills before 1 May 2017 will be Government funded for the full duration of their apprenticeship.

What’s happening next with the Apprenticeship Levy?

Government consultation and reviews are still underway. More details are expected to be released covering smaller employers and usage of Levy funds. NowSkills as the Northwest IT Apprenticeships specialists is ready to help and advise you with any questions you may have about the Apprenticeship Levy.

Get in touch with the IT Apprenticeship experts

NowSkills LogoThe Apprenticeship Levy will introduce more new employers to the positive opportunities of working with IT Apprentices.

By choosing to work with NowSkills IT Apprenticeships, you’re selecting a partner with a proven track record and ongoing commitment to Apprentice development, the Northwest region and the evolving IT landscape.

Our excellent learner success rates, dedication to employer satisfaction and highly-rated social proof reviews should, we hope, give you comfort that by working with NowSkills you are choosing a partner who is as committed to the success of your apprenticeship programme as you are.

If you’d like to learn more about working with us please contact us using this form or phone our sales advisers on 0161 714 1410 or 0151 539 9090