If you have a wage bill of over £3million per annum, you’ve probably already heard of the Apprenticeship Levy, and you most likely already pay into it. Are you wondering if you are making the most of it, if you are with the right provider, or whether you could be more effective working with a better, more forward-thinking provider?
If you’ve only just hit that £3million threshold, you may be new to the Levy, so below is a little information to get you started.
SMB College Group have delivered thousands of apprenticeships for some of the biggest employers both locally and nationally - so you can rest assured we know our stuff and can help you deliver an apprenticeship programme that maximises your levy and delivers the training and, ultimately, the staff that you want and need.
Wherever you are in your Apprenticeship Levy journey, we can help, so get in touch with one of our specialist advisors.
What Is The Apprenticeship Levy?
The Apprenticeship Levy is a payment of 05.% of the annual wage bill that will be collected from large employers with a payroll bill in excess of £3 million a year across all sectors (including connected companies and charities). Your annual pay bill is all payments to employees that are subject to employer Class 1 secondary National Insurance contributions such as wages, bonuses and commissions.
The payment is paid to the HMRC via PAYE returns. You can manage your levy via the Apprenticeship Service and the government will apply a 10% top up to the funds you have in your account.
The purpose of the levy is to encourage employers to invest in apprenticeship programmes and to raise additional funds to improve the quality and quantity of apprenticeships.
What Can The Digital Funds And Government Funding Be Used For?
Based on current funding rules, the levy can only be used for approved apprenticeship training:
- Apprenticeship training and assessment
- With an approved training provider and assessment organisation
- Up to the funding band maximum for that apprenticeship
What Can't Digital Funds And Government Funding Be Used For?
- Wages
- Travel and subsistence
- Managerial costs
- Traineeships
- Work placement programmes
Industry Training Levy Contributions
If you already contribute to an industry-wide training levy arrangement (for example the Construction Industry Training Board Levy), you’ll still need to pay Apprenticeship Levy.
Contact The Apprenticeship Team
For further information on the Apprenticeship Levy and individually tailored support, get in touch with our Apprenticeship Team today on 01530 519 001 or at This email address is being protected from spambots. You need JavaScript enabled to view it..