The Apprenticeship Levy

In 2015 the government announced plans to introduce the Apprenticeship Levy which is a new tax affecting employers in England with an annual pay bill of more than £3 million. It came into effect on 6 April 2017 when the first levy payments were taken from employers each month by HM Revenue and Customs (HMRC) through Pay as You Earn (PAYE), alongside tax and National Insurance payments.

The apprenticeship levy amount is 0.5% of the total pay bill, less the first £15,000. Therefore the pay roll bill must be over £3 million before any payments are incurred.

The levy payments taken from employers are put into the employer’s digital ‘Apprenticeship Service Account’ where it can be used to pay for apprenticeship training; for either existing staff or new recruits. The funds can only be spent on training – it cannot be used towards any associated costs such as wages or travel.

Ready to start spending the money in your digital account? This video will show you how!

Key facts about the Apprenticeship Levy

  1. A 10% top up will be added to your digital account; meaning for each £1 an employer pays, they will receive £1.10 in their digital account. The money in your digital account is referred to as ‘funds’.
  2. Your funds will expire 24 months after they enter your digital account unless spent. Funds leave your account on a First In, First Out (FIFO) basis.
  3. Your funds can only be spent on apprenticeship training delivered by an approved provider who appears on the Register of Apprenticeship Training Providers (RoATP) – CAW Business School (The College of Animal Welfare) is such a provider.
  4. Your apprentice’s details are uploaded into your Digital Account and payments are automatically transferred to your chosen training provider.

What can we offer an apprenticeship levy payer?

  • Vacancy advertisement – We can advertise your CAW Apprenticeship vacancies free of charge on the government ‘Find an Apprenticeship’ website as well as on our own online jobs board and social media if required
  • Application screening –To minimise your time spent recruiting, all applications for your apprenticeship vacancy will be screened by our experienced team to ensure that each applicant we put forward to you meets your requirements
  • Key account management – Your account manager will discuss your specific requirements on the phone or face-to-face as required to help you to make the most of your levy spend
  • Bespoke website page – After discussing your requirements, we can produce a webpage for you that will allow your employees to view your company processes, the courses that are available to them and begin the application process online. All at no extra cost!
  • Marketing support – We can work with you to help create marketing literature that can be used within your company to explain available apprenticeships and your agreed processes
  •  Key industry knowledge – We will ensure you are kept up-to-date with relevant levy legislation and apprenticeship standards that are being developed so you will be safe in the knowledge that your levy funds will be being used effectively
  • Flexible learning – with several centres throughout the UK and a variety of study options available, we provide a number of apprenticeships that can be studied in different ways such as blended learning, day-release or online study to make learning accessible to everyone in your team

Download our Guide to the Apprenticeship Levy

Take a look at the apprenticeships we offer

If you would like to speak to anyone regarding apprenticeship training, please contact us – we will be happy to talk you through your options.