The Apprenticeship Levy
The Apprenticeship Levy was introduced in April 2017 and applies to employers who have an annual pay bill of over £3 million. Around 2% of employers fall in scope to pay the levy and it’s charged at a rate of 0.5% of an employer’s pay bill. Each employer receives an annual allowance of £15,000 to offset against their levy payment and the levy is collected via the PAYE system on a monthly basis and paid into an online account.
The levy is administered through the Apprenticeship Service (AS) system which includes an online digital interface where employers can spend their levy with a registered apprenticeship provider of their choice. Employers have two years from when funds enter their account to spend those same funds before they expire. The levy can only be spent on the costs of the apprenticeship programme, not on salaries.
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