Apprenticeship Levy

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The government is committed to significantly increasing the quantity and quality of apprenticeships in England to reach 3 million starts in 2020.

"Today’s apprentices are tomorrow’s business leaders so it is right we invest in securing their futures. By developing the skills of young people, businesses can boost their productivity, employees can harness their talent and we can reach our potential as world beaters." Nick Boles MP
What does this mean for you?
  • Any UK employer, in any sector, with a pay bill of more than £3 million per year is liable to pay the levy
  • The levy will be 0.5% of the pay bill, paid through PAYE
  • An allowance of £15,000 to offset against levy liability
  • You will be paid a top-up of 10% of your levy back by the government.
To see if your business is liable, enter your payroll in to our levy calculator below. Once you know how much you will be paying in to the Levy, we can help you get the best out of the deal.

Total Payroll (£):

0.5% levy charge: 75000

Less £15,000 allowance: 60000

10% top up to your Levy charge: 6000

If each apprentice costs £15,000 over 3 years (on average), this equals £5,000 per apprentice per year. With the allowance of £60,000 you would get value for money by hiring 12 apprentices.