How does the apprenticeship levy work?
The Apprenticeship Levy is paid by employers in England and can be used to fund apprenticeship training. It is payable by all employers with an annual pay bill of more than £3 million at a rate of 0.5% of their total pay bill. Access to funds in the Apprenticeship Levy is only available to learners based in England, and employers report and pay the levy to HMRC through the PAYE process
My company has an annual payroll over £3million?
Employers with a pay bill of more than £3 million a year will pay into the apprenticeship levy. You will pay 100% of the apprenticeship funding band per learner, using funds available to spend in your online Digital Apprenticeship Service (DAS) account.
My company has an annual payroll under £3million?
Employers with a pay bill of less than £3 million a year do not pay into the levy. You will need to make a 5% cash contribution (co-investment) to the cost of the apprenticeship, paid direct to BMS Performance. The government will cover the remaining 95% of costs, up to the funding band maximum for the apprenticeship standard.
Access this guide for further information on the benefits of recruiting apprentices to your business or using the apprenticeship levy to upskill existing members of your workforce.