Apprenticeship Levy

The Government is driving business growth and skills through the new Apprenticeship levy.

It is an opportunity for your organisation to get support in training that can lead to increased productivity, a multi-talented workforce, and the ability to branch out into new areas

As an approved Apprenticeship provider we can help guide you through the process.

We can work with you to:

  • identify internal development opportunities
  • recruit new members of the team
  • help you to access funding
  • keep your costs to a minimum
  • As an organisation you will be able to access government support even if you haven’t contributed to the Apprenticeship levy.

Why not fill out your details or give us a call on 01509 515 461? We will gladly talk you through the options available to suit your business.

More Information

  • The Apprenticeship Levy in a nutshell

    • The apprenticeship levy will come into effect in April 2017. It will be payable by employers in the UK at 0.5% of paybill.

    • All employers will receive an allowance of £15,000 to offset against payment of the levy. This effectively means that the levy will only be payable on paybill in excess of £3 million per year.

    • The levy will be payable through Pay As You Earn (PAYE) and will be payable alongside income tax and National Insurance.

    • Each employer will receive one allowance to offset against their levy payment. There will be a connected person’s rule, similar the Employment Allowance connected person’s rule, so employers who operate multiple payrolls will only be able to claim one allowance.

    • The levy will apply to employers across all sectors.

    • Paybill will be calculated based on total employee earnings; it will not include other payments such as benefits in kind. It will apply to total employee earnings in respect of all employees.

    • Legislation to permit the imposition and collection of the apprenticeship levy will be introduced in the Finance Bill 2016.

  • Apprenticeship Levy FAQs

    • How can I spend/utilise the levy fund?

      The levy can only be spent on apprenticeship training provided by a registered and approved apprenticeship provider. It cannot be spent on anything else, such as internal training, apprentice salaries or the cost of setting up an apprenticeship.

    • Can I use the fund for CPD training e.g. for an accountant wanting to update his/her tax knowledge?

      No. The fund can only be used for government-published apprenticeship standards and the training included within this.

    • How much does apprenticeship training cost?

      The cost varies and is dependent on the apprenticeship level and standard.

    • Can I use multiple training providers or only one?

      Yes, you can use different training providers. We would advise that you find one training provider that can manage your apprenticeship programmes, including multiple suppliers.

    • Can an organisation become their own training provider and draw down the training funds?

      Yes, of course. You will be subject to Ofsted inspections and the administration that goes along with being a training provider, but it is an option, and there are plenty of examples of companies who have done this that you can learn from. To look into this further, consult the Department of Business Innovation and Skills (BIS) and the National Apprenticeships Service.

    • How long do employers have to claim back their levy funds on apprenticeships training?

      Our understanding is that the levy vouchers will be valid for two years. If you do not claim it back, other employers can then access these funds to pay for training apprentices within their own organisation.

    • Has the government stopped funding apprenticeships?

      No. The government will still ‘co-fund’ apprentices and pick up the bill for 90% of training costs if you are either:

      a) Too small to be levied

      b) You’ve spent all of your levy and want to train more apprentices

      Co-funding is where the government pays 90% of the agreed training costs and you, as the employer, only pay 10% (that’s 10% of the agreed funding band for the specific apprenticeship being delivered).

    • What happens between now and April 2017?

      Employers looking to start apprenticeships before April 2017 will be able to receive funding as per the current rules, under which employers of all sizes pay a third of training costs, with the Skills Funding Agency agreeing to cover the rest. Those who want to wait until next year will be able to register for their digital accounts, through which they can manage the funds, from January 2017.

Levy Calculator

Employers - Levy Enquiry

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