The apprenticeship levy is a tax on UK businesses with an annual wage bill over £3 million.

The levy funds apprenticeships in England and is paid into a digital account that businesses can use to pay for apprenticeship training and assessments.

There are two key things to remember about the apprenticeship levy:

1. The apprenticeship levy is not just for big businesses – any UK business can access funding for apprenticeships through the levy.

2. The apprenticeship levy can be used to fund any of our digital skills apprenticeships

The government’s aim is to increase the number of apprenticeships as a way to upskill the workforce and address skills shortages.

Who pays into the Apprenticeship Levy?

If you’re a UK business with an annual wage bill of more than £3 million, you’ll need to pay the apprenticeship levy.

How much do you pay into the Apprenticeship Levy?

Large business: The amount you pay is 0.5% of your wage bill, and you’ll also get a £15,000 allowance to offset against your levy payment. This means that you’ll only start paying the apprenticeship levy on your wage bill above £3 million.

Small or medium sized business: If you’re a small or medium-sized business, you won’t have to pay the apprenticeship levy but you may be eligible for government funding to support the cost of apprenticeship training.

What can the Apprenticeship Levy be used for?

The apprenticeship levy can be used to fund apprenticeships at all levels, from entry-level apprenticeships through to degree apprenticeships. The government has also committed to funding 90% of the cost of apprenticeship training for small and medium-sized businesses, so there’s no excuse not to take advantage of this fantastic opportunity to upskill your workforce.

A recent survey found that only 13% of businesses are using the apprenticeship levy, despite the fact that it has been in place for over two years. This suggests that there is a lack of awareness about the levy and how it can be used to benefit businesses.

There are a number of reasons why businesses may not be using the apprenticeship levy:

• One reason is that they are not aware of the levy and how it works.
• Businesses may not have enough apprenticeship training options in their area.
• Finally, some businesses may not have enough staff to justify taking on an apprentice.

Why is the Apprenticeship levy a valuable tool for businesses?

They can upskill their workforce and address skills shortages. However, more needs to be done to raise awareness about the levy and how it can be used to benefit businesses.

If you’re not sure how to get started with apprenticeships, don’t worry – you can get in touch with our team today!