Since 6 April 2017, employers have been required to pay the apprenticeship levy. The levy is set at a rate of 0.5% of an employer’s annual pay bill and is collected through the PAYE system. Employers receive an annual allowance of £15,000 to offset against payment of the levy, and therefore the levy is payable only by employers who have pay bills in excess of £3 million per year.
The government has announced that it will introduce a package of reforms to strengthen the role of employers in the apprenticeship programme, so they can develop the skills they need to succeed. As part of this:
All employers and businesses who offer apprenticeship programmes and pay the apprenticeship levy.
These measures will be implemented from 6 April 2019.
Employers and businesses who offer apprenticeship programmes and pay the apprenticeship levy will welcome these measures, and particularly the government’s willingness to work with them in the interests of aligning apprenticeships more closely to business need.
Global Employer Services Policy Lead