The government’s levy is quite simple to work out, it has three factors:

The annual payroll

Any company with an annual payroll over £3,000,000 there is a 0.5% levy which is held in your apprenticeship training account to pay for apprenticeship training.

There is a £15,000 allowance so a company with a £100,000,000 staff salary bill would pay 0.5% less £15,000 (£485,000).

If the company payroll bill is less than £3,000,000 and employs more than 50 people, or the levy apprenticeship training account is empty, the company will be required to make a 10% contribution towards the funding of an apprenticeship (the government will pay the remaining 90%).

The size of the company (staff)

If the company employs less than 50 staff with a payroll bill of less than £3,000,000, apprentices between the ages of 16-18 will be fully funded by the government (apprentices aged 19-23 with an education, care and health plan will also be fully funded). The company will be responsible for the 10% funding contribution for all other 19+ yr. old apprentices (the government will pay the remaining 90%).

All employer will receive a £1000 incentive for employing a 16-18 yr. old apprentice.*

 

Annual Payroll Employees How old is the apprentice? Funding
Above a £3,000,000 payroll a levy of 0.5% N/A N/A Funded 100% from Levy funds in your Digital Account
Less than £3,000,000 payroll PA no Levy 50 - 99 N/A Funded 10% by you and 90% through Government
Less than £3,000,000 payroll PA no Levy 0 - 49 19 - 23 Funded 10% by you and 90% through Government
Less than £3,000,000 payroll PA no Levy 0 - 49 16 - 18 (incl. 19 - 23 with ECHP) 100% Government funded education

*Paid £500 after 3 months on programme and £500 on completion of apprenticeship