What is the Apprenticeship Levy?
The Apprenticeship Levy is a 0.5% tax on the pay bill of UK employers with annual pay bills over £3 million. The levy is paid into a digital account and can only be spent on apprenticeship training and assessment. The government tops up levy funds by 10%.
What if I do not spend all my levy?
Unspent levy funds expire 24 months after they enter your digital account. You can transfer up to 25% of your annual levy to other employers, typically supply chain businesses, to help them fund apprenticeships. If you are consistently accumulating more than you spend, consider expanding your apprenticeship programme.
What does the government pay for non-levy employers?
Employers with fewer than 50 employees who hire apprentices aged under 19 pay nothing, because the government funds 100% of training costs. Other smaller employers pay a 5% co-investment contribution, with the government paying 95%.