The Apprenticeship Levy
We are Levy experts
We have over 25 years' experience working with employers and apprentices across all age groups, learning levels and more than 30 industry sectors
Every employer and setting is different, which is why we take time to understand your needs and co-create the right training solution for you and your staff
We are levy experts and know the complex financial, legal, quality and compliance landscape for apprenticeships – we will make your levy investment work hard for you
What is the Apprenticeship Levy?
The Apprenticeship Levy is a tax on UK employers with a pay bill over £3 million each year; required to fund apprenticeships, support business productivity and grow quality vocational training and employment.
The Apprenticeship Levy is charged at 0.5% of the employer’s annual pay bill.
It was introduced in April 2017 - as part of the Government’s apprenticeship reforms – with a target of recruiting 3 million apprentices by 2020:
- Payments are made monthly to HMRC through the PAYE process and held in an Apprenticeship Service account
- Businesses can only use funds in their account to pay for apprenticeship training and assessment for apprentices within their business
- Alternatively, businesses can transfer up to 25% of their Levy funds to support apprenticeship training in other organisations.
Levy-paying employers must use the Apprenticeship Service to:
- Manage their Levy funds
- Manage their apprentices
- Pay their training provider
- Stop or pause payments to their training provider.
Manage your Levy funds
Complete the form below and we can help you with all aspects of managing your levy funds.
How is the apprenticeship levy calculated?
The apprenticeship levy is charged at 0.5% of your annual pay bill. You can use HMRC’s Basic PAYE Tools to help you work out how much you need to pay.
For the first month of the tax year:
- Divide your apprenticeship levy allowance by 12.
- Subtract this figure from 0.5% of your monthly pay bill.
For each of the following months:
- Work out your total pay bill for the year to date.
- Add up your monthly levy allowances for the year to date.
- Subtract your levy allowance for the year to date from 0.5% of your total pay bill for the year to date.
- Subtract the amount of the levy you’ve paid in the year to date.
How can you spend the apprenticeship levy?
You can use these funds to upskill your team members through apprenticeships and training, recruit brand new apprentices, and use the funding to pay for End Point Assessments, the final stage that are conducted by independent organisations.
The levy can be spent on a number of elements related to apprenticeships excluding travel costs, management costs, required licenses, wages or the cost of setting up the apprenticeship.
Read our full guide – How to Spend your Apprenticeship Levy.
How we work with Levy-paying employers
Across Total People, we have dedicated and highly equipped teams to ensure your business objectives are achieved in regards to apprenticeships and apprentice funding.
Our teams include key account managers, recruitment and engagement officers, learning coaches and sector managers, all with years of expertise in designing and delivering apprenticeships for large Levy-paying employers.
We are ideally placed to offer impartial solutions to using your Apprenticeship Levy and can co-create training that aligns to your organisational needs.
We will help you:
- Fully understand recent regulatory changes, along with the implications of these in spending your Apprenticeship Levy
- Support you through these changes, guide you on planning so you know what to do
- Explore the range of apprenticeships available, and how they can help your organisation achieve its aims through Levy funded apprenticeships
- Receive the best possible training for your employees.
Tailored apprenticeships for your business
Our vision is to provide a complete training and recruitment package, adapting our apprenticeship training to meet your specific business needs. Aligning to your business objectives, we work in partnership with you to develop your workforce and provide the skills your employees need to keep up with a globally competitive market.
If your levy funds have not been spent within 24 months, that money goes back to the government.
If your business is not in a position to take on a new apprentice to make use of these funds by gifting up to 25% of your Levy fund to support small businesses to hire apprentices. It’s a win-win situation - you can ensure your unspent Levy funds go to good use, and support business growth in SMEs at the same time. This is great for CSR and developing industry relationships (with no additional costs to do so).Find out more
We work with businesses of all shapes and sizes, helping them to make the most of apprenticeships and work-based learning.View all
Get in touch
Whether you’d like to know more about a specific apprenticeship or ask a question, we’re here to help.