The Apprenticeship Levy applies to all employers in the UK and is paid at a rate of 0.5% of the employer‘s payroll cost through PAYE from April 2017. However, employers do not have to pay the first £15,000 of the Levy, meaning that if you are an employer with an annual payroll less than £3 million you won‘t be making any Levy payments, but you can still access government funding (up to 100% in some circumstances) for apprenticeship training.
If you are an employer with an annual payroll greater than £3 million, 0.5% of your payroll cost minus £15,000 will be automatically deducted via your PAYE on a monthly basis. Your Levy contributions will be held in your own “Levy Pot” and receive a 10% top-up from government; you can then use your Levy Pot to fund apprenticeship training with us – we are a government approved apprenticeship training provider.
Levy paying employers are not restricted to working with a sole training provider; we can provide technical IT, software and cyber security apprenticeships to you even if you use other providers for different types of apprenticeships. It is better to use a specialist provider for your technical apprenticeships, plus you don‘t need to give over control of your Levy Pot to one provider
The government has produced detailed information for employers, which can be accessed here. Sometimes it is easier to just talk things through – so if your organisation is paying the Apprenticeship Levy get in touch and we can arrange a chat to discuss how you can recoup the maximum benefit from your levy contributions.