The Apprenticeship Levy

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

Employers in the UK with a wage bill of £3 million or more will be taxed 0.5% of their wage bill above the £3 million. Funds will be collected through Pay as You Earn (PAYE).

Only 2% of all UK employers fall into this category.

There are no exceptions to the apprenticeship levy, if your pay bill is more than £3 million per year, the levy will be automatically deducted from your wage bill


Read more about how the apprenticeship levy will work below:



How to know if you’re a levy payer

A £3 million pay bill may seem huge, but it is the equivalent of having 150 staff paid £20,000 per year.

Top up payments

The government have committed to assist levy payers with apprenticeship funding. Once levy payments have begun, the government will pay a top up of 10% on all levy funds.

Funding for non levy payers

The apprenticeship levy also provides non levy payers with the opportunity to fund apprenticeships.

There are no compulsory payments into a levy fund. Instead, non levy payers will be required to fund 10% of the cost of their apprenticeship training. The government will cover the remaining 90% of training costs.

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