Uxbridge College Employer Services
What is the Apprenticeship Levy?
The apprenticeship levy has been introduced by the Government in order to fund apprenticeships in England for employers with a wage bill of over £3 million. The Levy comes into force from the 6th of April 2017. The levy in-effect changes the way apprenticeships are funded whether an employer pays the Levy or not.
The apprenticeship levy comes to force in April 2017, the Government’s objective of the levy is to give employers more control over where and how, money is spent on apprenticeships.
Frequently Asked Questions
Who is liable for the Apprenticeship Levy?
- Employers with a pay bill of over £2.8 million in previous year with likely increase of pay bill above £3 million in current tax year should register for the levy scheme.
- Employers with a pervious year pay bill of less than £2.8 million with no increase should register as and when they exceed £3 million.
What is the Apprenticeship Levy rate? How is it calculated?
An employer who would pay the levy
Annual pay bill of £5,000,000:
0.5% x £5,000,000 = £25,000
£25,000 - £15,000 - £10,000
Annual Levy Payable:
An employer who would not have to pay levy
Annual pay bill of £3,000,000:
0.5% x £3,000,000 = £15,000
£10,000 - £15,000 = £0
Annual Levy Payable:
How is the levy paid?
What can employers spend the funds on?
How do employers use the funds?
What are top-ups? How are they worked out?
What is the Digital Account? How to access it?
- select an apprenticeship framework or standard
- choose the training provider or providers the employer wants training to be delivered through
- choose the organisation that will assess you apprentices
- post apprenticeship vacancies
- set the price agreed with training provider
- pay for apprenticeship training and assessment
- stop or pause payments to providers
How do non-levy paying employers pay for apprentice training?
What about apprentices that started pre-April 2017?
Further information about the apprenticeship levy can be found on the Government’s apprenticeship levy webpage.
Further details of the Government's vision of apprenticeships can be found here.
For further information or to discuss your requirements, contact Uxbridge College Employer Services on:
01895 853786 | 01895 853780