The apprenticeship levy is a tax created by the Government in a bid to increase the amount of apprenticeships in England to 3 million by 2020. Introduced in 2017, the levy is paid by any employer that has over 50 employees and a payroll exceeding £3 million, with a set rate of 0.5% being collected through PAYE. Levy funds are accessed through a Digital Apprenticeship Service, and if your company is affected by the levy, the money will already be in your account.
The money collected is to be used solely for levy funding – with organisations having 24 months to spend the money before it expires. Only approved providers, such as Empentis, can be used as apprenticeship trainers; employers wishing to deliver their own internal training must first be approved as a provider.