The Apprenticeship Levy is a Government measure introduced in April 2016. The idea behind the Levy is to boost on-site training with 3 million apprenticeships in the UK by 2020. If you are wondering how this works and whether or not you are required to pay the Levy, take a look at the guide below.
If you’re unsure how to calculate your PAYE bill, take a look here.
The Apprenticeship Levy applies to UK employers in all sectors who have an annual Paye bill of £3m or more. Once an annual allowance is deducted from the employer’s wages bill, the equivalent of 0.5% of the employer’s total Paye amount is taken from the remaining amount. This remaining amount is the Apprenticeship Levy payment.
You can calculate your Levy contributions with our Apprenticeship Levy Calculator
Your Levy contribution is deposited in a Digital Apprenticeship Service (DAS) account. If you are based in England, the government will provide a further 10% top up, adding to your total apprenticeship funding.