Levy

Levy contribution

Are you looking to develop your apprenticeship and levy strategy? The Apprenticeship Levy experts at The World of Work Ltd offer free consultancy sessions in Enfield, London. Contact us today to schedule an appointment.

Apprenticeship Levy for employers

The Apprenticeship Levy is a UK business levy which is used to fund apprenticeship training by employers with an annual pay bill of more than £3 million. The levy will support quality training by putting employers at the centre of the system. It has been designed to encourage employers to use apprenticeship programmes, either to upskill their existing workforce or to train new staff. It applies to all industries and helps reduce the skills gap within the UK economy.

As per legislation, organisations have to make an investment of 0.5% of their wage bill, paid monthly through Pay As You Earn (PAYE) to HMRC. The government will pay a levy allowance of £15,000 per year to the organisations, to offset against the levy they must pay. 

But, any firm with a footprint that includes operations in the devolved nations must subtract this as a percentage of their total apprenticeship pot. Each month they will then get a further 10% top up from the government. Once an employer has paid their monthly levy bill, they will be able to access these funds to pay for apprenticeship training, in the form of digital vouchers, through a new Digital Apprenticeship Service account, which launched in May 2017. The use of the levy for funding apprenticeships is the responsibility of the Department for Education and the Skills Funding Agency in England.
Estimate apprenticeship funding
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Spending an apprenticeship account:

The levy allowance accumulates throughout the year with any unused allowance being carried over from one month to the next. It is calculated on a monthly basis. As an employer, you can directly claim your levy contributions or you can rely on the experts at The World of Work Ltd to help. Fifteen funding bands are allocated for apprenticeships, which range from £1,500 to £27,000, regardless of age or geographic location, which provides a more simplistic fee for employers to negotiate when working with providers.

You can calculate how many of the relevant apprenticeships can be delivered using your levy allocation by knowing the value of the qualifications you want delivered. The vouchers will last for 24 months from the time they appear in your digital account. Contact us today for information.
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Is your pay bill less than £3 million?

If your pay bill is less than £3 million per tax year, you will be required to contribute towards the cost of your apprenticeship training outside of the levy system i.e 10% of the total cost of your apprenticeship training through a co-investment payment - the government will pay the remaining 90%.

In addition to this, you can receive a £1000 incentive from your training provider if you recruit a 16- to 18-year-old apprentice. This is paid in two equal instalments (£500) at month 3 and month 12 of the qualification.

At The World of Work Ltd, we will go through the background to the levy to provide an estimate on your liability and advise you on potential apprenticeship pathways. Get in touch with us to discuss.
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Do you require help claim your levy contribution in Enfield, London? Call us on 020 3589 6723 today
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