What is the Apprenticeship Levy and who pays it?
Government funding for Apprenticeships has changed. An Apprenticeship Levy, a mandatory tax, was introduced for all employers with a wage bill that exceeds £3 million.
- Levy on UK employers will fund growth in the Apprenticeship programme. In parallel, employers have been given more influence over how Apprenticeships are designed and paid for.
- The Levy (0.5% of pay bill) is paid through PAYE. It applies to all employers in all sectors.
- Employers in England who pay the Levy are able to get out more than they pay into the Levy, through a 10% top-up to their digital accounts.