As part of the government’s commitment to create three million new apprenticeships by 2020, an apprenticeship levy was introduced on 6th April 2017.

The levy applies to all UK (Cymru, England and Scotland) employers and replaces apprenticeship funding previously provided by the government.

Employers in the UK that have a wage bill of £3 million or over will be taxed of 0.5% of their wage bill above the £3 million, it will be collected through Pay as You Earn (PAYE). Only 2% of all UK employers fall into this category.

Those employers that do not pay the levy will still be able to access some government funding to pay for apprenticeship training.

See what it means for your business below.

CYMRU & SCOTLAND

  • You will not be required to pay the apprenticeship levy
  • You will be able to access government funding for apprenticeships as per the current system

ENGLAND

  • You will not be required to pay the apprenticeship levy
  • You will be able to access government funding for apprenticeships using a co-investment model
  • You will be required to pay 10% of the training costs with government paying the remaining 90%
  • Small employers (less than 50 employees) who are not levy payers are exempt from paying for apprenticeship training where the apprentice is aged 16-18; is a 19-24 year old care leaver; or is 19-24 years of age and has a Local Authority Education, Health and Care plan. In this scenario, the government will fund 100% of the apprenticeship

CYMRU & SCOTLAND

  • The Levy rate is 0.5% of your total annual wage bill, paid through the PAYE process
  • You will be able to access government funding for apprenticeships as per the current system

ENGLAND

  • The Levy rate is 0.5% of your total annual wage bill, paid through the Pay As You Earn (PAYE) process
  • You will benefit from a 10% top up of your levy funds each month to help pay for apprenticeship funding
  • The levy payments will be managed by the online apprenticeship service
  • An annual allowance of £15,000 will be granted to offset against your levy payments

Employers in Cymru, England and Scotland are no longer required to pay National Insurance (NI) contributions for apprentices under 25 years old. This can mean considerable savings.

In Cymru

The Welsh Government offers incentives of up to £10,500 per employer, for SME's employing apprentices aged 16-19.

In England

All employers will receive an incentive payment of £1000 for employing a 16 to 18 year old, a 19 to 24 year old care leaver or 19 to 24 year old with a Local Authority Education, Health and Care plan.

Let Us Help

Arrange a Levy consultation to find out more.

Levy Consultation