What is the Apprenticeship Levy?
The Apprenticeship Levy was initiated by the UK government in April 2017, for all employers paying a wage bill of more than £3 million per year. Employers that meet this criterion are required to pay 0.5% of their payroll each month as a levy tax. This levy can then be used to invest in apprenticeship training for the workforce, or funds can be transferred (up to 50%) to other companies, so they can invest in apprenticeship training for their employees.
If apprenticeship funds are not used within 12 months they are returned to the treasury.
There is no limit to the number of employees that a levy-paying company can upskill.
Apprenticeship Funding for Non-Levy Payers?
Organisations with an annual payroll bill of less than £3 million per year benefit from 100% funding for employees aged 16-24 and pay just 5% towards the cost for employees aged 25+. There is currently no limit to the number of employees that a Non-Levy organisation can upskill using apprenticeship funds.
Cash Incentives & National Insurance Savings
- All employers benefit from NOT having to pay Employers National Insurance contributions for employees – if they are doing an apprenticeship and are aged 16-24.
- Non Levy Payers also get £3000 cash incentive if they enrol a new recruit aged 16-18 onto an apprenticeship and £2000 if they enrol a new recruit aged 19-24 onto an apprenticeship.
- Levy Payers receive £1000 cash incentive if they enrol a new recruit aged 16-18 onto an apprenticeship
These government incentives are designed to help employers upskill their whole workforce, raise productivity levels and drive the growth of the UK economy.
Funding & Incentives Calculator
Use the calculator below to understand what funding and incentives are available to your business.
The Apprentice Academy have a dedicated team focused on helping organisations understand and make the best use of the apprenticeship funding available to them.
For more information, please fill in the form below.
