Apprenticeship Funding
The Levy
The Apprenticeship Levy is a new tax that took effect in April 2017, designed to create a new fund that will pay for the training of three million apprentices in the UK by 2020. It affects all UK organisations with a PAYE wage bill of £3m or more.
How does it work?
- HMRC collect 0.5% of payroll monthly
- Funds collected are credited to employers online ‘levy account’
- Credits are topped up by 10% from the government
- Companies recruit apprentices and/or ask existing employees to undertake apprenticeship training
- Employers engage with one or more approved training providers
- Employers transfer levy credits to the provider(s) to pay for the training
This is of course a very brief overview of the changing world of apprenticeship funding, to learn more about how we can help you access your levy contact us below!
Non-Levy Payers
(Annual wage bill under £3M) – The government pays 95% of the cost and you pay 5%. This equates to you paying £16 per month per learner and the Government pays the rest. These programmes normally cost between £4,500 and £7,000 per person.