What is the Apprenticeship Levy?

Since 2017, the Apprenticeship Levy has been a compulsory payroll tax for UK based employers. If you are a public or private employer with a pay bill of over £3 million each year, you will pay the apprenticeship levy. The levy is a set rate of 0.5% of the total payroll, and is collected monthly via PAYE.

The aim of the levy is to encourage employers to actively support apprenticeships, promoting the development of new and existing employees.

Levy paying employers

As a levy paying employer, you are required to create an apprenticeship account through the government website. This allows you to:

• Receive and transfer levy funds
• Manage your apprentices
• Make, stop or pause payments.

Funds in your levy account can be used to pay for apprenticeship training for staff who work at least 50% of the time in England. Levy funds can't be used towards an apprentice's wages. When you choose The Learning Foundry as your training provider, we will provide a cost for your tailored training programme and will fully support you to manage your apprenticeship account.

Levy funds will expire 24 months after they are added to your digital account, unless you spend the funds on Apprenticeship training. 

Levy made simple

We’ll support you throughout the entire levy process, so you get the most out of your levy entitlement.

The Learning Foundry will carry out a FREE levy health check and training needs analysis of your workforce and put a tailored training programme in place, which allows you to strategically maximise your levy contributions. Our training is tailor made around your business needs and can be delivered at times, dates and locations to suit you.

Non-levy paying employers

If your pay bill is £3 million or less, you do not pay the apprenticeship levy.

Non-levy paying employers share the cost of training and assessment of their apprentices with the government. The government will fund 95% of the apprenticeship training, and you will pay the remaining 5%.

Employers are required to create an apprenticeship service account to reserve funding and manage apprentices.

If your apprentice is aged 16–18 and you employ 49 members of staff or less, the cost of their training is fully funded by the government.    

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The apprenticeship levy made simple