Apprenticeship Levy

Apprenticeship Levy

The levy applies to employers across the UK.

Apprenticeships (and wider skills budget) are a devolved policy area, which means that authorities in each of the UK nations manage their own apprenticeship programmes, including how funding is spent on apprenticeship training. The digital apprenticeship service will support only the English apprenticeship system.

To calculate how much you will have to spend through the English system, UK Government will use HMRC data, which includes data about the home address of your employees.  This information will be used to work out what proportion of an employers pay bill is paid to employees living in England.


For further information on the Levy please click on the links below:

The Apprenticeship Levy - Large Employers

There are some key changes to the way Apprenticeships in England are funded.

What is the Apprenticeship Levy?

The Apprenticeship Levy is a new tax on businesses that will be introduced from April 2017. The levy can only be spent on an approved apprenticeship at any level.

Who will pay the Levy?

Employers with an annual payroll over £3 million and operating in the UK (including private, public sector and voluntary sector organisations) will have to pay the levy.

What will be the cost for Levy payers?

0.5% of an employer’s total payroll with a £15,000 allowance to offset the overall cost.

The levy will be paid to HMRC through the PAYE scheme and online tools will be available to employers through the new Digital Apprenticeship Service.

Non-Levy Paying Small and Medium Employers

There are some changes to the way Apprenticeships in England are funded for small to medium-sized employers.

What will be the funding mechanism for Non-Levy payers?

The government estimates that 98% of employers won’t pay the levy.

These employers will be expected to make a 10% contribution and the government will contribute the remaining 90% of the cost of training an apprentice.

Are there any incentives for businesses?

Small businesses employing a 16-18 apprentice will receive £1,000 payment (in 2 instalments) for taking on a 16-18 year old on an apprenticeship framework or standard, as well as 19-24 year olds who were formerly in care or who have an Education and Health Care plan.


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Further information on the background to these reforms can be found at

To find out more about the Welsh Government’s response to the Apprenticeship Levy visit

Please get in touch for support to help you plan the delivery of your Apprenticeship programme. Call 01244 656499 or email:

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