Best Practice

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Apprenticeship Levy

In May 2017, the UK Government will introduce the Apprenticeship levy - payable by all organisations with an annual payroll bill greater than £3m per annum.

Key Facts

The levy will be introduced from April 2017
The levy will be paid by all UK organisations with an annual payroll >£3m
It will be paid monthly to HMRC through the employer's PAYE
Paid at 0.5% of the organisation's total payroll amount
There will be an an annual allowance of £15000
Money paid will be applied to the employer's 'digital account'
The government will apply a 10% top up to all funds paid in

Spending the Levy

Levy funds can be used to pay for Apprenticeship training and assessment
Levy funds can only be spent with an approved training provider
The cost of the training is deducted monthly from the employer's 'digital account'
Levy funds are spent on a 'first-in, first-out' basis
Levy funds will be lost if they are not spent within 24 months
The levy can only pay for learners who start their apprenticeship after 01.05.2017
If the levy amount is used in full, employers pay 10% towards the cost of additional learners

NB. Separate rules will apply in Wales, Scotland and Northern Ireland

Please contact us for further information and advice on how to make full use of your levy funds.