WHAT IS THE APPRENTICESHIP LEVY ?
Page updated with the latest Apprenticeship Levy information November 2017. Details are subject to change. For more information, you can also visit the GOV.UK website.
The Apprenticeship Levy started on the 6th April 2017. Since then, employers in any sector with an annual payroll of over £3 million have to pay a Levy charged at a rate of 0.5% of annual payroll.
This is estimated at only 2% of businesses in England. This will be done monthly and is also paid to HM Revenue and Customs (HMRC) through the Pay as You Earn (PAYE) process. The funds paid into the levy account will be made available for the employer to use as funding for IT Apprenticeships only. 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.
Your Levy funds are available to spend in England. Your Levy funds will be adjusted to reflect your proportion of English based employees. Additionally, the government will apply a 10% top-up to your available funds to invest in Apprenticeship training in England.
After entering your digital account, your levy funds will have an expiration date of 24 months from the day of entry.
If your payroll is less than £3,000,000 per annum you don’t need to pay the Apprenticeship Levy
How will it affect me or my business?
Additionally, the aim of the levy is to develop vocational skills and also increase the quality and quantity of Apprenticeships. Furthermore, the government’s committed to the levy. They are assisting in making an additional 3 million Apprenticeship starts by 2020. Also, this is a benefit for the employers and also the young learners as well.
Looking for more information? Why not check out our FAQs page.
GET IN TOUCH WITH THE IT APPRENTICESHIP EXPERTS
Furthermore, the Apprenticeship Levy will also introduce more new employers to the positive opportunities of working with IT Apprentices. If you’re unclear about the Levy even for non-IT apprenticeships, please contact us we’re happy to assist where we can.