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Realising Improvement in Skills & Enterprise
for limitless growth

The Apprenticeship Levy

Realising Improvement in
Skills & Expertise

Increase your understanding of the Apprenticeship Levy.

Who funds an Apprentice?

  • If your organisation has over 50 employees, the Government will pay 95% of the costs of training and assessment, while you pay the remaining 5%.
  • If you’ve fewer than 50 employees, the Government will cover 100% of the costs of training a 16-18 year old.
  • The Government also pays £1,000 to employers if they train a 16-18 year old apprentice, or if they train a 19-24 year olds leaving care or who have a Local Authority Education and Healthcare plan.
  • If you’re an organisation that has a pay bill of over £3m, you pay a UK tax of 0.5% of that total pay bill to fund apprenticeship training.

The Apprenticeship Levy

  • The Apprenticeship Levy affects all organisations with an annual payroll of over £3m, regardless of whether they already currently employ Apprentices or not. It is payable by employers in the UK at the rate of 0.5% of the payroll cost through PAYE alongside Income Tax and National Insurance.
  • There is a Levy Allowance worth £15,000 for each tax year. This means the levy is only payable on wage bills over £3m (because 0.5% x £3 million = £15,000).
  • It is possible to recover 100% of your Apprenticeship Levy and significantly increase the skill levels of your existing staff or new recruits.
  • In addition, the Government will apply a 10% top-up to your funds. This means for every £1 that enters your digital account, you will have £1.10 to spend on apprenticeship training.

The Apprenticeship Service

The Apprenticeship Service is an online digital system (similar to online banking) that has been set up to support employers with securing apprenticeship training. The online service allows employers to financially manage their apprenticeship programme and help them to estimate their financial spend and recruit apprentices.

To set up an Apprenticeship Service account go to:
www.gov.uk/guidance/manage-apprenticeship-funds.

Non-Levy Payers

Funding & Contributions

Co-Investment
Employers who do not pay the Apprenticeship Levy will benefit from Government support towards the cost of their apprenticeships training.

The Government will pay 95% of the costs of training and assessment. The employer will be responsible for paying just 5% of the cost.

There are two types of employers who will receive government support:

  1. Employers who do not pay the levy and want to purchase apprenticeship training.
  2. A levy-paying employer with insufficient funds in their digital account to pay for the cost of training and assessment they want to purchase.

Additional Incentive

Employers with fewer than 50 employees will have 100% of the training and assessment costs covered when training a 16-18 year old.

The Government will pay £1,000 to employers if they train a 16-18 year old apprentice.

Contact Us

To discuss apprenticeships with one of our Engagement Officers,

Call 01422 418 430 or email us at apprenticeships@calderdale.ac.uk.

We engage with over 3000 employers and 4500 students, providing career progressing skills.

Apprenticeships have become a cost-effective way for employers to expand their workforce and develop talent for the future.

Employer Responsibilities

Read our ten responsibilities you have to an apprentice as an employer.

We’ll answer your questions and explain why employing an apprentice can be so beneficial for your business.

See our explanatory flow chart below for information on the Apprenticeship Levy.

Funded by: