As an employer in the UK, you may be eligible to pay the Apprenticeship Levy if your annual payroll is over £3 million. If you are a Levy-paying employer, you have access to funding through the Apprenticeship Service to help you invest in the training and development of your employees.
The Apprenticeship Levy is a tax on UK employers to fund the training and development of apprentices. It was introduced in April 2017 as part of the government’s plan to increase the number of apprenticeships in the UK. The Levy is paid at a rate of 0.5% of an employer’s annual payroll, with a £15,000 annual allowance that can be offset against the Levy payment.
As a Levy-paying employer, you have the opportunity to use your Levy funds to invest in the training and development of your current employees, or to hire new apprentices. This can be a cost-effective way to upskill your workforce and help your business grow.
To access your Levy funds, you will need to create an account on the Apprenticeship Service and use the funds to pay for apprenticeship training and assessment through an approved training provider. The training provider will work with you to develop a training plan that meets the needs of your business and your employees.
In summary, the Apprenticeship Levy is a tax on UK employers that can be used to fund the training and development of apprentices or current employees. As a Levy-paying employer, you have the opportunity to use your Levy funds to invest in the growth and development of your workforce, which can be a cost-effective way to upskill your employees and help your business succeed.