Non-Levy Employers

Digital Apprenticeship Service:

From April 2021 all Levy and Non-Levy employers will be expected to use and manage the apprenticeship service for any new apprenticeships. Employers who are hiring apprentices will need to create an Apprenticeship Service Account so you can access the funds.

Click here for further guidance.

Alternatively, a member of apprenticeship team can help you set up your account. If you would like to book a session or call to set your business up on the Digital Account Service, please contact us on 020 3764 4333 .

How do I Determine if I have to pay the apprenticeship Levy?

The introduction of the Apprenticeship Levy has changed how apprenticeships are funded. The levy is a payroll tax on UK employers to fund new apprenticeships opportunities within an organisation. If your company has an annual pay bill of more than £3 million, you will be paying the Apprenticeship Levy. If your business as a wage bill of under £3 million than your apprenticeship programmes would be supported, and at the very least part funded, via the Education and Skills Funding Agency.

How do I calculate paying the apprenticeship levy?

An employer with 100 employees, each with a salary of £25,000
Pay bill: 100 x £25,000= £2,500,000
Levy sum: 0.5% x £2,500,000/100= £12,500
Subtract Levy allowance: £10,000 -£15,000= £0 ANNUAL LEVY PAYMENT

Will I have to pay for apprenticeship training?

Potentially there could be a cost to your organisation. This would be dependent on the size of your organisation and the circumstances of the apprentice you hired. Below is some key facts to funding.

• If your business does not have a £3 million a year wage bill, you will not have to pay the Apprenticeship Levy.
• This would mean there would be either no costs to training for your business or you would pay a 5% contribution to the training costs. (This is dependent on the age of the apprentice.)
• You will be required to pay a 5% contribution to the total cost of the apprenticeship training if the apprentice is aged of 22 or over.
• The remaining 95% of funding would be provided by the Education and Skills Funding Agency.
• If the apprentice is between the age 16-21, then you will not be required to contribute to apprenticeship training cost. The apprenticeship will be fully funded by the Skills Funding Agency.

Are there any grants/incentives that I can receive?

Yes, there are multiple incentives that you may be eligible to receive if the apprentice and your business meets the criteria.

Every employer can receive an incentive of £1000 if they take on an apprentice aged 16-18 or an apprentice who is 19-24 with an Education Health Care Plan or a care leaver. You receive the first £500 payment at 3 months into the apprenticeship, with the final payment of £500 received at 12 months into the programme.

Can I receive funding from other employers?

If you are in a group of companies paying the levy together, your group can already set up a single shared apprenticeship account and pool your funds. Read more about how to register connected organisations.
You may also work within a supply chain with large organisations who can transfer some of their apprenticeship levy funds to you. To see if you are eligible for this please speak with your supply chain.