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What is the Apprenticeship Levy?

The Apprenticeship Levy is an employment tax introduced by the UK Government and has been in effect from 6th April 2017. It is designed to support businesses in hiring new apprentices by covering some of the costs of their training journey.

More information on how the Apprenticeship Levy works is available at the UK Government website.

Do all employers have to pay the Apprenticeship Levy?

All employers with a gross yearly wage bill of £3 million or more – whether private, public or third sector – have to pay the 0.5% levy.

Is the Apprenticeship Levy compulsory?

Employers (whether public, private or third sector) have to pay the Apprenticeship Levy each month if:

  • The employer has an annual pay bill of more than £3 million.
  • Or, they are connected to companies or charities for Employment Allowance purposes and have a combined yearly wage bill of more than £3 million.

How do employers actually pay for the Apprenticeship Levy?

HM Revenue and Customs (HMRC) collect the levy each month through Pay As You Earn (PAYE), payable alongside income tax and National Insurance.

What is the Apprenticeship Levy used for?

The money is disbursed from a collective fund in different ways across the UK but is ultimately to help employers hire and train new apprentices, to help bridge potential skill gaps within their organisation, and to ‘future-proof’ their business in the longer term.

For more information on GTG’s apprenticeship programmes, visit our Apprenticeships section.

Accessing apprenticeships across the UK

The following links provide information on how to access apprenticeships in England, Scotland, Wales and Northern Ireland.

The Scottish Qualifications Authority (SQA) has also published a guide to help explain apprenticeship policy across the four nations of the UK.

Non-paying levy employers (England-based)

Non-paying levy employers in England seeking to access reserved funds for apprenticeships can find more information here.