About the Levy

Apprenticeship Levy

The government has introduced the Apprenticeship Levy which has changed the way apprenticeships are organised and paid for. Employers with an annual salary bill in excess of £3 million per year are required to provide the funding.

Across all employment sectors

Employers across all employment sectors are required to pay the Apprenticeship Levy. Only employers with a pay bill in excess of £3 million are obligated to pay. The Levy is charged as a percentage of the yearly pay bill. The Apprenticeship Levy is payable to the HM Revenue and Custom.

Paying the Apprenticeship Levy

You receive a bill based on the wages subject to secondary National Insurance Contributions at Class 1. All wages count in calculating the bill, even those below the threshold. Wages include any money gained through employment which includes commission, bonuses, and pensions. Your Apprenticeship Levy will be payable to HMRC.

Your Apprenticeship Levy allowance

Employers gain access to a Levy allowance which accumulates as the year progresses. The Apprenticeship Levy allowance is offset against your bill. This amount totals to around £15,000 every year.

How to access your funds

You can access funds for your apprenticeships by creating an apprenticeship account. This is the gateway for employers looking to fund apprenticeships and arrange training.