Employer Levy

The Apprenticeship Levy
If you’re an employer with a pay bill over £3 million a year, you must pay the apprenticeship levy from 6 April 2017. You will report and pay your levy to HMRC through the PAYE process. Less than 2% of UK employers pay the levy.

Levy funds will create opportunities for young people across the country, delivering the skills British businesses need. The levy will give employers control of their training, agree a total price for each apprenticeship, which includes the costs of training and assessment. In England, the government will top up employers’ levy with an extra 10%, paid directly to employers’ apprenticeship accounts. An employer’s pay bill is made up of the total amount of the employees’ earnings that are subject to Class 1 National Insurance contributions, such as:

  • wages | bonuses | commissions | pension contributions

What about non-levy-paying employers?

Employers with a pay bill of less than £3 million a year will not need to pay the levy. At least 95% of non-levy-paying employers’ apprenticeship training and assessment costs in England will be paid for by the government. The government will ask these employers to make a 5% cash contribution to the cost, paid directly to the provider, and the government covers the rest (up to the maximum agreed funding band).

The Apprenticeship Service

Through the apprenticeship service on GOV.UK employers can plan and manage their apprenticeship programme, giving them greater control over their apprenticeships and account funds.

The apprenticeship service is made up of the following:

  • Estimate my apprenticeship funding allows employers to calculate whether they will pay the apprenticeship levy or not, and how much they will have available to spend on apprenticeships. It also shows all employers how much the government will contribute towards the cost of training.
  • Find apprenticeship training gives employers easy-to-digest information on the choices available to them. They can easily search for and find a standard, framework and training provider, and compare one provider with another.
  • Recruit an apprentice is a new platform through which training providers can post vacancies and manage applications for apprenticeships and traineeships. This will be opened up to employers at a later date.
  • Find an apprenticeship and Find a Traineeship are the recruitment sites that enable employers to advertise their vacancies for free and find candidates who match their criteria.
  • Manage apprenticeships allows registered levy-paying employers to view their account balance, manage their apprentices and approve funds to pay for their apprenticeship training.

Find an Apprenticeship