The Apprenticeship Levy

The Apprenticeship Levy

  • Date: Tuesday 25th October 2016

April 2017 will see the introduction of the Apprenticeship Levy. But what exactly is it and how will it affect employers and apprentices? Here are the facts:

  • It only applies to employers with a payroll bill of more than £3m per annum.
  • These employers will have to pay 0.5% of their wage bill into a pay-as-you-earn holding account via a tax deduction.
  • All employers in England who have paid in are able to assign their funds to apprenticeship programmes and approved training by accessing the Digital Apprenticeship Service (DAS).
  • The Government will pay for a 10% uplift on contributions.
  • Arrangements for Scotland, Wales and Northern Ireland have not yet been confirmed.


Many employers, such as the NHS, will be unlikely to exhaust their entire payment fund. However, large employers who utilise the coming months to establish a strategy on levy expenditure will be able to benefit from the government uplift and withdraw more than they put in.


Time will tell how much of an increase on apprenticeships this levy will trigger. The likelihood is that many employers will simply see the levy as an additional employment tax, which supports the apprenticeship scheme.


Source: Manuela Grossmann - SSG


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