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.
Get in touch
How we work with Levy employers
Across Total People, we have dedicated and highly equipped teams to ensure your business objectives are achieved.
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 training for your business
Our vision is to provide a complete training and recruitment package, adapting our 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.