Apprenticeship Levy

Many people do not realise that once you have utilised your Levy Pot, the government will fund 95% of any further apprenticeships you offer.

That even applies to existing staff.

When did the Levy come into effect?

The Levy came into effect in April 2017 and any employers subject to the tax should have had their first payment taken then.

Apprenticeship Levy Facts

● Employers have an allowance of £15,000 to offset their Levy.

● Employers affected by the Levy pay 0.5% of their wage bill per month into their pot.

● Any organisation paying in to the Levy will need to utilise apprenticeships for existing employees or new recruits to make use of it.

● The Levy is paid monthly via PAYE and the government will provide a 10% top up on a monthly basis.

● The Levy can only be used to fund Apprenticeship Training and Assessment with an approved training and assessment provider.

● Funds expire 24 months after they enter the Levy digital account so if you don’t use it you’ll lose it.

● Be careful not to get caught out if you are a ‘connected’ company e.g. part of a group as you only get ONE allowance. This means that even if your pay bill is under £3 million you may find yourself in scope.

Not sure what the Apprenticeship Levy is and whether it affects your company?

In short Apprenticeship Levy is a mandatory tax against your wage bill of 0.5% and is only applicable if you wage bill equates to or exceeds £3 million per year. It can be used to fund apprenticeships or training existing staff but, if it is not used within two years, the funding expires.

The levy applies to both public and private employers across all sectors and is paid by all UK employers.

Using your Apprenticeship Levy

At Professional Apprenticeships we take time to understand the needs of all of the companies we work with and offer a free consultation to help you discover the most productive way to use your Apprenticeship Levy.

This can include identifying skills gaps, addressing an ageing workforce or upskilling existing staff with a variety of training options. Get in touch and one of our apprenticeship experts will visit to help you get the most from your Levy.