Employer guide to Apprenticeships

The levy will only impact your business if you have a pay bill of over £3m, which is based on the total amount of earnings subject to Class 1 secondary employers NIC.


Each employer will have an allowance of £15,000 to offset against their levy payment and the levy will be deducted on a monthly basis, where your pay bill is over £250,000.

 

Employer A

  • Employer A has 250 employees, who each earn £20,000
  • The employer will have a pay bill of £5,000,000
  • The government will take 0.5% of £5,000,000 totalling £25,000
  • The employer receives a £15,000 allowance to offset against the levy
  • The total annual levy payment would be £10,000
 

Employer B

  • Employer B has 100 employees, who each earn £20,000
  • The employer will have a pay bill of £2,000,000
  • The government will take 0.5% of £2,000,000 totalling £10,000
  • The employer receives a £15,000 allowance to offset against the levy
  • The total annual levy payment would be £0

Employer guide to Apprenticeships