About the Apprenticeship Levy
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. The levy is collected monthly and is paid to HM Revenue and Customs (HMRC) through the Pay as You Earn (PAYE) process. The funds paid into your levy account will be made available for you 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 only. 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.
How will it affect me or my organisation?
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 Apprenticeship Levy FAQs page.