Are you an Employer?

Apprenticeships are proven to be one of the most effective ways to recruit, train and develop highly skilled employees within your company.  In fact, 88% of employers believe that Apprenticeships lead to a more motivated and satisfied workforce.  You can recruit an Apprentice of ANY AGE and they can start their training at Level 2, 3 or 4, depending on the type of role you’re looking to fill.

Apprenticeships also allow existing employees to achieve accreditation in recognition of their work-based competencies which can help them progress within their careers. They also provide employers with the re-assurance that their staff are competent to perform their job roles at the required industry standard.

Levy or Non- Levy?

The Apprenticeship Levy came into effect on 6 April 2017 and is part of the Government’s plan to increase the quantity and quality of apprenticeships. The Levy is a new tax which aims to help towards the Government’s target of three million new apprenticeships in England by 2020

Who pays the Levy?

From 6th April 2017, all public and private sector employers in the UK with a staff pay bill over £3 million per year are required to pay the mandatory Apprenticeship Levy which is 0.5% of their pay bill. All employers have an allowance of £15,000 to offset against levy costs, so no levy will be paid on the first £3 million of payroll costs. The levy is paid to HMRC via each company’s PAYE scheme.

How will it be collected?

The money will be collected by HMRC and for apprenticeship training in England will be accessed via a new Digital Apprenticeship Service (DAS) account. You will be able to use this to pay for your apprentice training.

What can the Levy be spent on?

When an apprenticeship has started, monthly payments will be automatically taken from your digital account and sent to the training provider. This spreads the cost over the lifetime of the apprenticeship. You will see funds entering your digital account each month as you pay the Levy, and funds leaving the account regularly each month as you pay for training.

Non – Levy Payers

Non-levy paying employers will contribute 10 % of the cost of training an apprentice, and the government will ‘co-invest’ by paying the remaining 90 % . Businesses with under 50 employees won’t pay anything if they employ apprentices an apprentice 16-18 and will receive a £1,000 payment with an additional £1,000 payment to the training provider. The government’s new digital service will help employers to select an apprenticeship framework, choose training providers and assessment organisations, and post their apprenticeship vacancies.

It is important for apprentice employers and stakeholders to be aware of the government’s Prevent initiative. Please view the following PDF for more information. Prevent – A guide for employers