Guide to the apprenticeship levy

The Apprenticeship Levy The Apprenticeship Levy is a UK tax on employers which is used to fund apprenticeship training. It is payable by all employers with an annual pay bill of more than £3 million, at a rate of 0.5% of their total pay bill. It is collected through PAYE alongside other employment taxes. introduced in April 2017 and is designed to push the burden of funding apprenticeship training from the taxpayer to UK employers. All UK companies are subject to the levy, not just those with current apprentice A person who is employed to learn a skilled trade, and who will typically work alongside experienced professionals in their chosen field. placements.

The Apprenticeship Levy was announced in the Summer Budget 2015, and then during the Autumn Statement in 2015 it was announced that it would come into effect in April 2017.

A consultation was held between 21 August 2015 and 2 October 2015 to hear from employers how the levy should work in practice. At the Autumn Statement 2014 the government announced it would abolish employer Class 1 Employees under State Pension age earning more than the threshold a week from one job - they’re automatically deducted by the employer. National Insurance A system of contributions paid by workers and employers in the UK, which funds various state benefits, such as the State Pension and Jobseeker's Allowance. Contributions for apprentices aged under 25 on earnings up to the Apprentice Upper Secondary Threshold (AUST) Employers of certain apprentices who are under 25 pay zero rate up to this point.

 

You can get more information from GOV.UK
https://www.gov.uk/guidance/pay-apprenticeship-levy External website

---