Apprenticeship Levy 2017

Apprenticeship Levy 2017


  • Date: Monday 27th March 2017
  • PDF: Download

To boost apprenticeships, the government has introduced an apprenticeship levy from April 2017, with first payments to be made from May 2017.

Who is affected?

  • Employers with a pay bill over £3 million per annum will have to pay 0.5% of their payroll. A ‘levy allowance’ of £15,000 per year will be subtracted from the 0.5% total.

How will the Apprenticeship Levy be paid?

  • The levy will be paid each month through the PAYE process in the same way companies pay Income Tax or National Insurance contributions.
  • Single employers with multiple PAYE schemes will only have one allowance.
  • Levy raised against the payroll of their employees who live in England will be available to fund apprenticeships. Funds raised against employees who live in Scotland, Wales or Northern Ireland will go into general taxation.

Who benefits?

  • All levy paying employers in England will be able to dip into their apprenticeship fund via a digital funding account set up by the Government, and can also benefit from a 10% contribution top-up.
  • Any unspent funds in the digital account will expire after 24 months.
  • If an employer has not paid the levy and would like to train an apprentice, they will need to co-invest 10% and will benefit from government funding to cover the remaining 90% of the cost.

Training eligible for funding under the scheme:

  • New funding caps have been introduced and these range from £1,500 to £27,000 across 15 apprenticeship bands.
  •  Finding a provider and negotiating the cost of the training will be down to the employer,  although training providers are generally expected to fall in line with government guidance.

Source: SSG - Manuela Grossmann


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