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Head Office | Unit 1 | Hutton Business Park | Bentley Moor Lane | Carcroft | Doncaster | South Yorkshire | DN6 7BD

Apprenticeship Levy 

 

Apprenticeship Levy was introduced in April 2017 and meant that all employers with an annual pay bill of more than £3 million were were required to pay 0.5% of their bill. The Levy is paid on a monthly basis through PAYE alongside Income tax and National Insurance.

An Employers pay bill is made up of the total amount of the employee's earnings that are subject to Class 1 National Insurance contributions such as:

  • Wages

  • Bonuses

  • Commissions

  • Pension contributions

 

Each employer will have a Levy allowance of £15,000 a year, similar to how Personal Tax Allowances work. It is not a cash payment. Employers who pay Levy will also get a 10% top up through their online accounts meaning you get back more than you put in. For example, if you pay in £100, you will get £110. 

Apprenticeship Levy funds are only to be used for Apprenticeship training and assessments. It is not for use on wages, travel or subsidiary costs, managerial costs, work placements, traineeships or the costs of setting up an Apprenticeship programme.

For more information on how Apprenticeship Levy works, please visit www.gov.uk/guidance/pay-apprenticeship-levy