The Apprenticeship Levy

Annalisa Deufemia | 23/03/17

What is the Apprenticeship Levy?

The Apprenticeship Levy was announced in November 2015 and is a mandatory tax for all employers with a wage bill that exceeds £3,000,000, this will come into effect from April 2017. The government is committed to achieving 3 million apprenticeship starts by summer 2020 and the introduction of the levy will encourage employers to take on apprentices.

Who will need to pay the Apprenticeship Levy?

The rate for the levy will be set at 0.5% of an employer’s wage bill where it exceeds £3,000,000 and will be collected via PAYE. Employers affected by the levy will receive an allowance of £15,000. The levy will only be payable on wage bills in excess of £3,000,000 and will affect less than 2% of UK employers.

We can help you find out how you can recover your tax, invest in your workforce and grow your workforce in a sustainable way. 

What if your wage bill is under £3,000,000? 

Employers with a wage bill below £3 million, will have to pay towards the cost of an apprenticeship. Those employers are expected to pay a 10% contribution and the government will pay the remaining 90%. 

We can support you with advice and guidance to make the most of your apprenticeship spend.

What should employers do now?

If you are an employer, currently supporting apprentices, use the ‘Employer Levy Calculator’ to advise you as to how much money you will pay towards the levy (if any). Please contact us if you wish to have a discussion to support you in your ongoing apprenticeship strategy.

If you are an employer who doesn’t currently take on apprentices and you will be affected by the levy, we would advise that you start to consider setting up a pilot apprenticeship scheme so you are in the best position to make use of your levy funds in 2017. Hawk training can provide you with advice and guidance to support you setting up your apprenticeship strategy.

Apprenticeship Levy Calculator and Fact Sheet

Please feel free to use the calculator attached to support you in your apprenticeship strategy. We have also attached our Apprenticeship Levy fact sheet to provide you with as much information as possible.

Apprenticeship Levy Calculator 

Apprenticeship Levy Fact Sheet

Hawk will:

  • Provide you with a FREE no obligation consultation to support your understanding of the levy and ensure you take full advantage of apprenticeship opportunities;
  • Work in partnership with you to devise an apprenticeship strategy, including planning, costings and tailoring provision to meet your business needs;
  • Support you to upskill your existing staff and recruit new talent into your organisation, keeping you informed at every stage;
  • Provide you with the latest updates of government policy that may affect your organisation;

You may find the following links useful: 

Pay Apprenticeship Levy 

Apprenticeship funding: how it will work

Register to manage your apprenticeship funds

Apprenticeship funding and performance management rules 2017 to 2018

Apprenticeship funding bands

If you would you like to arrange a meeting with Hawk Training to discuss the implications of the levy to your business, please complete the ‘Employer Levy Calculator’ and return to us using the following email address - levy@hawktraining.com. If you have any questions or would prefer to speak on the telephone, please call us 020 8891 0992.  


Next: My Apprenticeship Journey in the NHS

Previous: Hawk Training approved on the Register of Apprenticeship Training Providers (RoATP)


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