Apprenticeship Degree Apprenticeship Government Apprenticeship Levy United Kingdom

Tackling the Apprenticeship Levy: A Comprehensive Guide for Employers

Understanding the Levy

The Apprenticeship Levy is a tax introduced in the UK in 2017 to fund apprenticeship training. Employers with an annual pay bill exceeding £3 million are required to pay 0.5% of their total pay bill into the levy.

This levy is used to co-fund apprenticeships, with the government contributing 95% of the cost of training up to a maximum of £27,000 per apprentice.

Who Pays the Levy?

• Employers with an annual pay bill over £3 million.
• Public sector employers, such as local authorities, universities, and the NHS.
• Private sector employers, including businesses and charities.

How to Pay the Levy

Employers can pay the levy through the HMRC's online portal. Payments are due on the 6th of each month. Employers who fail to pay the levy on time may face financial penalties.

Apprenticeship Levy Calculator

The government has developed an Apprenticeship Levy Calculator to help employers estimate their levy liability. Employers can use this calculator to input their total pay bill and determine their monthly levy payment.

The Apprenticeship Levy Calculator can be found on the GOV.UK website.

Using Apprenticeship Levy Funds

Employers can access Apprenticeship Levy funds to cover the costs of training new apprentices. Funds can be used to pay for the following:

• Apprenticeship training costs
• Assessor costs
• Materials and equipment
• Travel and subsistence costs

Non-Levy Paying Employers

Employers who do not pay the Apprenticeship Levy can still offer apprenticeships. These employers can access government funding through the following schemes:

• Apprenticeship Service
• Incentive payments
• Co-investment grants

Benefits of Apprenticeship Training

Apprenticeship training offers a number of benefits for employers, including:

• Developing a skilled workforce
• Improving productivity
• Reducing staff turnover
• Boosting staff morale

According to a study by the National Apprenticeship Service, apprenticeship-trained employees are 10% more productive than non-apprenticeship-trained employees.

Conclusion

The Apprenticeship Levy is a valuable tool for employers looking to develop their workforce and improve their business. By understanding the levy and how to use it effectively, employers can access a range of benefits and support the development of the future workforce.