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!

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.

If you have an annual wage bill under £3M, you will not be a levy payer. You are still able to take advantage of government funding for staff apprenticeships though! The government will pay 95% of the cost and you pay 5%. This equates to you paying approximately £16 per month per learner and the Government pays the rest.