Apprenticeship Levy
Key Points of The Apprenticeship Levy - Quest HR
From 05th April 2017, employers with a paybill over £3m are charged a levy of 0.5% of their paybill;
The “paybill” is based on the total employee earnings subject to class 1 secondary NICs;
The 0.5% levy is on your full UK payroll not just the amount over £3m;
The levy is paid through the PAYE and is payable alongside income tax and National Insurance;
Payment is taken monthly, in real time, meaning if your paybill changes each month, the levy amount taken will be reflected;
Based on current funding rules, the levy can be claimed back and spent on apprenticeship training for all employees at all levels and ages, including graduates who may be eligible for level 6 or 7 apprentice programmes;
Based on current funding rules, the levy can be used to fund existing employee development as long as they meet the criteria set out;
It is estimated that 3-5% of an employer’s workforce will need to be an apprentice to utilise the levy;
The levy funds the government’s commitment that there will be 3 million apprentice starts by 2020. The aim is for the levy to put apprenticeship funding on a sustainable footing.
No – this is a mandatory tax that came into force from 05th April 2017.
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