We can help you understand the apprenticeship levy and maximise the funding incentives available. We offer a one-stop service to navigate the funding arrangements. We make sure that your workforce benefits from the high-quality training supported by the levy.
If you’re an employer with a pay bill over £3 million a year, you must pay the apprenticeship levy from 6 April 2017. Employers with a pay bill of less than £3 million a year will not need to pay the levy.
The levy is paid and collected through HMRC by larger businesses that can claim back their levy contribution to pay for training apprentices. The amount of levy funding employers have to spend is available on the Government’s online Apprenticeship Service and the employers’ Digital Service Account.
Less than 2% of UK employers pay the levy. Levy funds will create opportunities for young people across the country, delivering the skills British businesses need. The levy will give employers control of their training, and agree on a total price for each apprenticeship, which includes the costs of training and assessment. In England*, the government will top up employers’ levy with an extra 10%, paid directly to employers’ apprenticeship accounts.
UK employers with an annual wage bill of over £3 million are required to invest in apprenticeships. The levy funds can be used for approved apprenticeship programmes that meet employer-approved apprenticeship standards.
The training can be used for existing staff or new recruits who meet the eligibility requirements.
The levy rate is 0.5% of the total wages bill for employers (in all sectors and industries) who have a total employee pay bill of more than £3 million a year.
Find out when you have to pay the Apprenticeship Levy and how to work out and report your payment on the GOV website here.
If you contribute to the levy, you will be able to see the funds you have available for apprenticeships online. To do this you will need to register for or use your current Government Gateway account. Log in to your account and add the details for the PAYE scheme you will use for your apprenticeship. You will then be able to manage your apprenticeship by adding apprentices’ names and quickly and easily authorise training provider payments.
Every apprenticeship standard and framework is placed in a funding band, which sets the maximum amount of funding that can be used towards training costs over the length of the apprenticeship. The same funding bands will apply to all employers paying for apprenticeships.
The government is encouraging employers to support young people in quality apprenticeships by providing additional funding incentives:
Employers with a pay bill of less than £3 million a year will not need to pay the levy.
Non-levy paying employers will share the cost of training and assessing their apprentices with government – this is called ‘co-investment’.
The co-investment rate has changed for new apprenticeships starting on or after 1 April 2019. You will now pay 5% towards the cost of apprenticeship training. The government will pay the rest (95%) up to the funding band maximum.
All apprenticeships that started before 1 April 2019 will continue at the previous co-investment rate of 10%.
To find out more about how much you will be able to spend on each apprenticeship and how the apprenticeship levy can help your business, read the following information:
Let us guide you through the apprenticeship levy. We’re here to answer all your questions about the apprenticeship levy and start your apprenticeship recruitment. Call us on 0207 391 6400 or email email@example.com