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Apprenticeships

The Apprenticeship Levy was introduced by the Government in April 2017. It will be paid at a rate of 0.5% of an employer’s wage bill and will be paid through Pay as You Earn (PAYE).

Why Was The Levy Introduced?

The Apprenticeship Levy was introduced to help raise £3 billion per year, to meet a target of three million new ‘high quality’ Apprenticeships by 2020.

Who Has To Pay The Apprenticeship Levy?

Any company with a pay bill over £3 million will be liable to pay the levy. All companies receive an allowance of £15,000 for the levy, equivalent to 0.5% of a £3 million pay roll.

Example One: Employer of 250 employees, each with a gross salary of £20,000 
Pay bill: 250 x £20,000 = £5,000,000 
Levy sum: 0.5% x £5,000,000 = £25,000 
Allowance: £25,000 - £15,000 
Annual Levy Payment = £10,000

Example Two: Employer of 100 employees, each with a gross salary of £20,000 
Pay bill: 100 x £20,000 = £2,000,000 
Levy sum: 0.5% x £2,000,000 = £10,000 
Allowance: £10,000 - £15,000 
Annual Levy Payment = £0

How Will I Claim The Training From My Levy Payments?

Employers in England will be able to reclaim their contributions and choose training providers via a voucher system, through the new Digital Apprenticeship Service.

What Are The Benefits Of The Levy For Employers?

  • Apprenticeship content will be exactly what you need
  • Ensure you are getting value on your investment when working with your training provider
  • Access to higher and degree level Apprenticeships
  • Ensure that at the end of the Apprenticeship your Apprentice is competent in the role you need them to do You supply labour (including subcontractors) to a client


What Do I Need To Do Now?

Contact us!

Total Excellence Centre are here to help and advise you on the Apprenticeship Levy and support you with the Management Apprenticeships and Standards for your business.

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