Apprenticeship Levy Advice

Qualitrain’s experienced advisors can help businesses design and deliver their apprenticeship programmes post-Levy.

Originally announced in the 2015 summer budget the Apprenticeship Levy will come into force in April 2017. It is a Government initiative that will change the landscape of Apprenticeships for employers, and many will need assistance in making the most of the opportunities, and avoiding any pitfalls.

The Government is to apply the levy to qualifying employers across all industries, throughout the UK, as part of its plan to help fund 3 million new apprenticeships by 2020.

As a major commitment to increasing both the quality and the quantity of apprenticeships in England, the government is handing over control to the employers themselves. Handled correctly, this can lead to greater take-up and the development of more tailored and appropriate qualifications with new benefits to the businesses concerned. Qualitrain has guided thousands of apprentices to successful outcomes, and helped many businesses to manage their apprenticeship programmes. Now our UK-wide teams will be available to assist businesses to deliver their own successful schemes.

Key Facts

  • The Levy will apply to all organisations with an annual paybill of over £3million per annum, regardless of whether they already employ apprentices.
  • Your Levy account will be the only source of state funding for Apprenticeships.
  • It will be payable by employers in the UK at the rate of 0.5% of the paybill cost through PAYE collected monthly alongside Income Tax and National Insurance.
  • Employers will not be required to pay the first £15K of the levy.

Sample Calculation

Employer of 250 employees, each with a gross salary of £20,000
Wage bill: 250 x £20,000 – £5,000,000
Levy Sum: 0.5% x £5,000,000 = £25,000
Allowance: £25,000 – £15,000 = £10,000 annual Levy Payment

For further advice and assistance, email to arrange a cost-free advice session.