The Apprenticeship Levy
To improve professional skills of the UK workforce and to put apprenticeship funding on an sustainable footing, from 6 April 2017, the way the government funds apprenticeships in England is changing for all employers. Some employers will also be required to contribute to a new ‘Apprenticeship levy’.
The levy will be imposed on all employers operating in the UK with a pay bill over £3 million each year and they will be able to claim the levy payment back, only if they invest in apprenticeships. Other employers with an annual pay bill lower than £3m will be able to take advantage of a 90% government subsidy to invest in apprenticeships.
The Key Facts
- The Apprenticeship Levy will be introduced on 6 April 2017
- It requires all employers with an annual wage bill of more than £3 million to pay the levy (as a tax) and provides business with an opportunity to invest in apprenticeships
- The levy will be charged at a rate of 0.5% of a company’s payroll bill and will be collected through PAYE
- All employers will have an allowance of £15,000 to invest in apprenticeships
- Businesses in England will be able to directly access their funds through a new Digital Apprenticeships Service
- The Digital Apprenticeships Service will also allow employers to select training providers and assessors, pay for training, and post apprenticeship vacancies
- For every £1 an employer in England pays into their digital account, the Government will add a 10% top up
- Funds in the digital accounts will be available to spend on apprenticeships up to two years after they have been deposited
- Employers who do not have to pay the levy can receive 90% towards the cost of training an apprentice
133 Hall Road, Upminster RM14 1AL (UK)
Find the Academy
Directions: Exit the M25 at Junction 29, taking the A127 towards London. After about 1/2 mile take the slip road exit, sign posted to Upminster & Cranham. Turn left on to Hall Lane and after 1/2 mile, the Supply Chain Academy can be found on the right. Enter via the third gate on the right.
Nearest Rail Station: Upminster
London Underground Station: Upminster