How does the Apprenticeship Levy work?
Solvo Vir is a qualified training provider with a network of trainers across the country. We provide a full consultancy service to employers who choose to access training with us, and who may be unfamiliar with the Levy process. This means that you don’t need to have a thorough knowledge of how the Apprenticeship Levy works, because we’ll take care of all the difficult paperwork and tricky processes for you.
Put simply, employers who meet a certain set of criteria pay into the Apprenticeship Levy. The government
applies a top up equivalent to 10% of this payment, and the total funds can be used against employee training.
How the Apprenticeship Levy is calculated
- UK employers with an annual PAYE bill of £3m or more pay the Apprenticeship Levy
- An annual allowance is deducted from the employer’s wages bill
- An amount equivalent to 0.5% of the employer’s total PAYE amount is then taken from the remainder
- This 0.5% amount is the Apprenticeship Levy payment payable by the employer
- The payment is deposited in an Apprenticeship Service Account
- The government applies a top-up of 10% to the funds available
- The Apprenticeship Service Account can be accessed to fund employee training.
Apprenticeship Levy for employers
Apprenticeship Levy funds can be used to upskill existing staff members, plugging any skills gaps within the organisation. They can also be used to train entry-level employees. Unless you are registered as an apprenticeship employer-provider, training funded by the Levy can only be delivered by an approved
apprenticeship provider, such as Solvo Vir. The Department for Education and Skills Funding’s Register of Apprenticeship Training Providers (RoATP) lists approved training providers.
To find out more about the Apprenticeship Levy and how to access your Levy funds, take a look at our Apprenticeship Levy Explained page of frequently asked questions.