The apprenticeship levy is a government initiative introduced to fund apprenticeship training and boost apprenticeships across England. It is a form of taxation that applies to businesses that have an annual payroll of more than £3 million.
How does the Levy work?
All businesses that have an annual payroll of more than £3 million are taxed at 0.5% of the total bill – known as the levy allowance. This is collected each month and then stored in a fund for the employer to use solely on apprenticeship training costs. The bigger the payroll bill, the more you will pay into the levy, so, there will be a bigger the fund to access.
What does the Levy cover?
Employers who pay the Apprenticeship Levy can use the funds to cover the full cost of apprenticeship training and assessment up to the maximum funding band for the Apprenticeship Standard. The Levy cannot be used to pay for apprentice salaries however, there are additional financial incentives that you can use towards these costs.
Who can access the Levy?
All large organisations have dedicated a dedicated person who manages the Levy contract. Apprenticeship candidates will need to speak to their line manager who will point them to the appropriate person that gives permission to access the fund.
What if my employer doesn’t pay into the Levy?
Non-levy payers are still entitled to government funding for up to 95% of the apprenticeship training and assessment costs up to the maximum funding band for the Apprenticeship Standard. As the employer, you are then responsible for funding the remaining 5%.
How do I access the Levy?
- You will need to create Digital Apprenticeship Service (DAS) account to access the Levy
- Before you start, you will need: Your Government Gateway login details for your PAYE Schemes
- Click ‘create account’
- Add your employer PAYE Scheme details – You will also need either the Government Gateway login for your organisation, or your accounts office reference number (AORN)
- Select one of the two options most applicable to your organisation
- Accept the Employer agreement
What benefits can apprenticeships bring?
- Increased productivity
- Reduced recruitment costs
- Lower staff turnover
- Skills gaps are addressed
- A skilled and qualified workforce
To upskill your workforce, please contact 01639 700388 or email firstname.lastname@example.org for more information.