Key aspects of the levy include:
- The levy will be 0.5% of an employer’s paybill which is in excess of £3million
- It will be collected by HMRC, directly via PAYE process
- There is a £15,000 allowance, similar to PAYE tax allowance
- The Government will top-up monthly funds for apprenticeship training by 10%
- No employer is exempt
1. Employer with a pay bill of £2,000,000
- Levy sum: 0.5% x £2,000,000 = £10,000
- Subtract Allowance: £10,000 - £15,000 = £0 annual levy payment (as total levy sum amounts to less than the £15,000 allowance)
2. Employer with a pay bill of £50,000,000
- Levy sum: 0.5% x £50,000,000 = £250,000
- Allowance: £250,000 - £15,000 = £235,000
- After 10% top-up = £235,000 + £23,555 = £258,000 levy funds available to spend
2. Employer with a pay bill of £2,000,000,000
- Levy sum: 0.5% x £2,000,000,000 = £10,000,000
- Allowance: £10,000,000 - £15,000 = £9,985,000
- After 10% top-up = £9,985,000 + £998,500 = £10,983,500 levy funds available to spend
Read the Government’s Apprenticeship levy guidance, August 2016.
Read our employers page for top tips on getting the most out of your levy by delivering high quality apprenticeships to boost your business’ productivity.
|Bryony Kingsland - UK Funding Manager
||Watch our Funding Manager, Bryony Kingsland, outline the principles of the levy.|
The Digital Apprenticeship Service (DAS) is an online portal that will enable employers to have a levy account showing the amount of funding they can spend on apprenticeships. From August 2017, the DAS will also enable levy-paying employers to make virtual payments to providers that are delivering their apprenticeships for the employer.
The service will provide details of education providers in the area of the employer’s premises offering the desired apprenticeship. This will allow employers to approach local providers to negotiate funding and contributions.