The Apprenticeship Levy: Are you using yours?

For the past six years, employers have had access to the Government’s Apprenticeship Levy. What exactly is it and how can you use yours before the year is out?

What is the levy?

The levy is a small tax charge paid by larger employers with an annual wage bill over £3 million. They pay 0.5% of their total annual pay bill to the Government; HMRC collects this automatically via PAYE.

Following that, the online apprenticeship service holds the levy in an account. Contributing employers can access their funds online in the form of vouchers, which they can use to pay for eligible apprenticeship training.

As an incentive to use their funds, the government tops up the amount held in the employer’s Apprenticeship Levy account by 10%.

The government issues a £15,000 allowance to companies to reduce the bill they pay across the year, an allowance that can’t be rolled over into the next year.

Business owners have 24 months to spend the levy fund. If they don’t, the funds expire.

You can use yours to…

• Upskill current employees – nurturing them will increase their productivity, wellbeing, and job satisfaction;
• Maximise the potential of new hires – enable them to learn new skills as they go and add value to your organisation;
• Futureproof your teams – train staff in the latest digital skills and remain competitive for the long term.

Need help?

For the past eleven years, we’ve been named as one of the Top 20 IT Training Companies in the World. We offer more than 400 accelerated courses, many of which can be added to bespoke apprenticeships tailored to your business needs. Get in touch today for a free consultation.