Apprenticeship Funding and Levy for Employers
The levy is a government tax of 0.5% for every UK employer with a pay-bill of over £3million. The Apprenticeship Levy will affect all large organisations with an annual payroll of over £3million, regardless of whether they already currently employ apprentices or not. It will be paid through PAYE alongside Income Tax and National Insurance. You can then spend your Levy funds on apprenticeship training and the end point assessments.
The Levy also presents a number of opportunities to small businesses who do not pay into the Levy but can take advantage of the funding available. Some smaller employers won’t have to contribute to the fund, but can draw from it, and take advantage of the online apprenticeship resources available. Non-levy paying employers will contribute 10 per cent of the cost of training an apprentice, and the government will ‘co-invest’ by paying the remaining 90 per cent. Businesses with under 50 employees won’t pay anything for their apprentices aged 16 to 18 and for those aged 19 to 24 formerly in care or with a local authority education, health and care plan as apprenticeship training and assessment costs in England will be paid for by the government.
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Click here to read our FAQ’s on the Apprenticeship Levy.