Employer Apprenticeship Levy

The Government has announced the introduction of an Apprenticeship Levy to employers with an annual wage bill of more than £3 million, to be implemented April 2017.

  • What is the new apprenticeship levy?

    In a bid to deliver three million apprenticeship starts by 2020, the government has announced the introduction of an Apprenticeship Levy on employers with an annual wage bill of more than £3 million to increase their contribution towards staff training.
  • Who will pay the Levy?

    Employers with a wage bill of more than £3 million per year will pay a levy of 0.5% of their payroll from April 2017. The levy applies to all industries in the private and public sectors.
  • What happens if I don't have to pay the Levy?

    • You won’t need to use the Digital Apprenticeship service until 2018
    • You can choose the appropriate training you’d like your apprentices to receive
    • You may need to make a contribution to the cost of this training, the government will pay the rest (co-investment)
  • How will the Government collect the levy?

    The levy will be collected through the employers Pay As You Earn (PAYE) and will be payable alongside incomes tax and national insurance. Employers can then access these payments to fund apprenticeship training.
  • How is the ‘paybill’ calculated?

    Paybill is based on total employee earnings, it will not include benefits in kind.
  • if I have to pay the Levy, how much will I have to pay?

    • The levy will be 0.5% of the annual paybill. Every employer is given a £15,000 allowance. This allowance is easiest explained with an example:
    • There will be a connected persons rule so employers who operate multiple payrolls will only be able to claim their £15,000 allowance once.


  • How will employers reclaim the funds?

    Employers will be able to access the funds they have paid through the apprenticeship levy to fund apprenticeship training for their business. Employers will be free to choose their training provider (e.g. their local college or other training provider) from those on the Register of Providers and discuss their needs and delivery. The funding is then paid directly to the provider from the government.   

    We can help you get ready for the new levy now and get back more than you put in through a successful apprenticeship programme. Contact us now and discover how we can help you develop an apprenticeship scheme that will meet your business needs, drive your company forward, increase productivity and address your future skills gaps.

  • What is the Digital Apprenticeship Service?

    • The Digital Apprenticeship Service started to be rolled out from October 2016 for Levy payers, non Levy payers to follow.
    • Select the most appropriate Apprenticeships from Bracknell & Wokingham Colleges’ offer and pay for Apprenticeship training and assessment.
    • Post apprenticeship vacancies on “Find an Apprenticeship”
    • Funds will be taken monthly from your Digital account to pay for training (pro rata)
    • Any residual allowance will remain in your account for 24 months.
  • What are Funding bands?

    • Each Apprenticeship will have a maximum amount of Govt funding allocated to a specific band, please contact our Apprenticeship Team now to start your journey with an Apprentice, call 01344 868600 (option 4), email or request a call back.


  • Other Incentives

    • Payment for recruiting a 16-18 year old apprentice
    • You  recruit an apprentice who is between 19 and 24 years old and who has an Education and Health and Care Plan provided by the local authority or a 19 to 24 year old who has been in the care of the local authority
  • Will I have to pay National Insurance contributions?

    • You will not pay national Insurance contributions for apprentices under the age of 25. This includes new entrants and existing staff.


  • How do I transfer apprenticeship service funds?

Get in contact

Ask our Enquiries & Admissions team by email or call on 01344 868600

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