Apprenticeship Employer Levy

What Is It?

The Apprenticeship Levy has been introduced for large employers to help raise funds to provide Apprenticeships to young people and adults. It funds training for new staff you recruit and existing employees to needing to upskill.

Alongside the Levy, the way in which Apprenticeship standards are designed and used by employers has changed, making them simpler and more relevant to the skills needed by business.

Apprenticeship Employer Levy

Will My Company Be Affected?

The Levy will be charged at a rate of 0.5% of an employer’s pay bill. A £15,000 allowance for employers will means the levy will only be paid on employers’ pay bills over £3 million. For example;

Company A

  • Annual Pay Bill = £4,500,000
  • 0.5% Levy = £22,500.00
  • Less £15,000 Allowance
  • Cost To Company = £7,500 per year.

Company B

  • Annual Pay Bill = £2,400,000
  • 0.5% Levy = £12,000.00
  • Less £15,000 Allowance
  • Cost To Company = Nil as Levy total is covered by allowance

What Do I Need to Do If I Am Required to Pay the Levy?

The Levy and any allowance due will be calculated monthly and collected as part of the HMRC RTI Return (in the same way as Employers NI).

The Government will also pay a 10% Top Up on your Levy contributions. This means you will get 110% of what you pay in.

But you do need to think how you can maximise your investment. By talking to BCTG we can help you plan effectively to ensure you get the full return on your Levy contribution.

I'm A Small Company, So I Won’t Be Paying the Levy

You will still benefit though. Small & medium sized employers who don't pay the levy will get a 95% Government subsidy towards the Apprentice training costs.

So, for just a 5% contribution, we will create a customised programme to recruit, train and assess staff to bring bottom line benefits to your business.

We Provide an End to End Service, To

  • Help ensure that you maximise all funds that you pay into the Levy by helping you recruit and train high quality apprentices
  • Make sure Apprenticeships make a real impact on your business
  • Provide high quality, flexible Apprenticeship training that’s focused on your business needs
  • Help you manage your online Apprenticeship Account, submit any information or returns required by the Government or HMRC
  • Make sure the training meets all the government rules, ensuring you maximise your entitlement to Apprenticeship training

A Proven Track Record

With over twenty five years’ experience, we work with over 2300 small, medium and large companies throughout the UK, supporting more than 4500 Apprentices.

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