Apprenticeship Levy FAQs
Below are some common questions which we have been asked by some of our employers. If you have any questions about the Apprenticeship Levy which aren’t answered below please contact a member of the team today and we’ll be happy to help.
1. How does the Apprenticeship Levy affect my organisation?
It will impact on your organisation. If you are a Levy paying employer (annual wage bill of more than £3 million) you will pay for the cost of your apprenticeship training. If your wage bill is less than £3 million, you will pay 10% of the training costs with the Government paying the other 90%
2. What will it cost?
The basic charge is 0.5% of your annual PAYE bill. However, levy paying companies will also receive a £15,000 Levy allowance to offset this. If your apprenticeship training costs exceed the amount in your levy pot, the government will then pay 90% of the training costs, with you paying the remaining 10%.
3. When does it come into force?
The Levy comes in to affect in April 2017.
4. Does it affect Public Sector organisations as well as businesses?
Yes it does. Please talk to a member of the team for more information.
5. What happens if I enrol my member of staff on apprenticeship training before May 2017?
This apprenticeship training will be subject to the existing Skills Funding Agency rules, and will remain so for the duration of their qualification
6. Is the Government not going to pay for apprenticeship training anymore?
They will still fund 90% of the training costs if you are not a levy paying employer or if you are a levy paying employer and use all funds in your levy pot
7. What is the Online Apprenticeship Service?
It’s an online portal which allows Apprenticeship Levy payers to access their funding and pay for apprenticeship training online
8. When can I register for my account?
Levy paying employers can register now here. Non-levy paying employers (98% of companies) can’t currently set-up an account, so you will pay the apprenticeship training costs directly to your training provider
9. What information do I need to register my account?
- Your Government Gateway login details for any PAYE schemes that you want to include in your account (your payroll or finance team will have access to these)
- Your Companies House number or charity number (if your organisation has one)
10. How can Progress to Excellence help?
Progress to Excellence have a range of options, we will provide workforce analysis to determine current and future need, through bespoke solution design and mobilisation delivery.
Complete the form below and let us support you in your planning for the Apprenticeship Levy!