The Apprenticeship Levy

The Apprenticeship Levy

In November 2015, Her Majesty’s government announced a mandatory tax for all employers with an annual wage bill in excess of £3m. This started in April 2017 and is to support the government in achieving 3 million Apprenticeship starts by summer 2020 and the levy is being used to encourage employers to take on Apprentices.

How will it be calculated?

The Levy has been set for all employers with a wage bill in excess of £3m, which should affect less than 2% of employers. The rate is set to 0.5% of the wage bill over the £3 million and will be collected through PAYE. There is a £15,000 allowance for employers not connected to another company or charity.  The allowance reduces the amount of  the Apprenticeship Levy you have to pay over the year. Any unused allowance is not permitted to be carried over to the next tax year.

The levy payments will be put into a Digital Apprenticeship Service Account, which will be used to manage payments for Apprenticeship Delivery with Weir Training. We will provide you with our UKPRN number to enter to the Digital Account. Weir Training are available to support you with setting up the digital account and payment of funds. Contact us on 01932 567626 and we will be happy to help.

The government will automatically add a 10% top up to the levy funds in your digital account when they are paid in. Any group or connected companies will get only one £15,000 allowance between them. Funds can only be used to pay an Approved Training Provider for Apprenticeship delivery that appears on the Register of Approved Training Providers (ROATP)

Select the link below to calculate your Levy contributions:

Estimate my Levy funding

If all the Levy funds have been allocated to Apprenticeships, Weir Training have a direct contract with the Education and Skills Funding Agency, to enable us to offer further funding to your employees.