Appenticeship Levy

 The levy is coming

From April 2017 the national apprenticeship programme will be expanded with the introduction of the apprenticeship levy. The aim of the levy is to fund 3 million new apprenticeships by 2020, encouraging businesses to employ apprentices or retrain their existing staff.

The apprenticeship levy will be charged at 0.5% of the organisations payroll payable through the PAYE along with income tax and national insurance contributions.

Organisations will be exempt from the first £15k of the levy, which translates to the levy only being charged for payrolls in excess of £3 million per year, irrespective of if the organization employs apprentices. Therefore, the levy will apply to 2% of UK employers.

Public sector organisations will also be required contribute to the levy if their payroll meets the aforementioned criteria, and 2.32% of their staff must be apprentices.