All employers are subject to the apprenticeship levy if their annual pay bill is
£3 million
or over
Payable at
of payroll paid monthly
The levy comes into force from

April 2017

If employers do not ‘spend’ their levy it will be lost

The levy will be applied to all businesses across the UK

10% top-up for each apprentice

All employers receive an allowance of £15,000

Pay bill will be calculated based on total employee earnings.


250 employees, each with a gross salary of £20,000

£20,000 x 250 = £5,000,000

Levy sum:
£5,000,000 x 0.5% = £25,000

£25,000 – £15,000 = £10,000

To spend on Apprenticeships


Non-Levy Small Businesses will not have to make any cash contributions


Employers with over 50 employees will have to make a contribution of only 10% of the cost of training

Each Apprenticeship standard will have a maximum funding amount.

When employers take on a 16-18 apprentice, they will receive a £1000 to ‘meet the extra costs associated to this’. This will be paid in two instalments to employers via their chosen training provider.

Extra support of £2k will be available to employers and training providers that take on a 16-18 apprentice or young care leavers with an education, health and care (EHC) plan. The employer and provider will receive £1k each.

Levy employers will be able to use funds to retrain workers in new skills, even if they have prior qualifications.

The proposed funding systems will consist of 15 bands, each will an upper limit ranging from £1500 to £27000.

Watch this video on how to add apprentices and set up payments
Watch this video for information about what an employer needs to have in place before they set up an account on the apprenticeship service.

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