How the Levy will affect business
The Apprenticeship Levy is a Government initiative that will see a levy applied
to large UK companies in every industry. The scheme is designed to fund
apprenticeships, contributing to the Government’s target of backing a further
3 million by 2020.
Both the quantity and quality of apprenticeships look set to improve as the
Government renews its commitment to investing in apprenticeship training.
Employers will also benefit from access to funding to take on apprentices
and train existing employees.
At Dimensions Training Solutions we can support you to train and upskill
existing staff, with Apprenticeship programmes, and connect your company
with the next generation of talented school leavers.
Your business will only pay a Levy if:
- Your payrole for staff is over £3 million per annum. Regardless of the
number of Apprentices already employed
- An annual payroll of less than £3 million means that no payment is needed,
but you will still receive Government support for apprenticeships.
- You can find out how to make the most of Apprenticeship Levy funding by
getting in touch with DTS, we can guide you through the entire process
supplying as much, or as little support tailored to suit your organisation. For
more information, please email:
- The Apprenticeship Levy will be introduced on 6th April 2017.
- Any company that exceeds an annual pay bill of £3 million must make a
levy payment, regardless of any current apprentices employed.
- Employers will pay the Apprenticeship Levy through PAYE, with Income Tax
and National Insurance. Payment will be at a rate of 0.5% of their payroll.
- Companies are not required to pay the initial £15,000 of the Apprenticeship
Levy, which ensures that only payrolls of above £3 million a year will be
- Businesses of every size will be supported by the Government to take on
apprentices and provide existing staff with Apprenticeship opportunities.
- Organisations in the public sector will be eligible to make payments and
apprentices must make up at least 2.32% of their workforce.
- From April 2017, the Apprenticeship Levy applies to companies across
every sector. Employers will pay through PAYE at a rate of 0.5% of their
annual payroll. Businesses are entitled to a £15,000 allowance, meaning
that only 2% will qualify to pay each year.
- The Apprenticeship Levy will give more young people a direct pathway to
employment, while also supporting employers with staff development. If
you pay into the scheme, your contributions can be converted into digital
vouchers. Companies in the UK can use the vouchers to take on new
apprentices, within the first 18-24 months, by submitting evidence to
- A 10% top-up payment will also be supplied by the Government. There
may be future opportunities to access further top-ups and invest in
more apprenticeships. A long-term commitment to training school
leavers could see employers get more back than they put in.
- The Government aims to encourage more companies to get involved
with apprenticeships. This will provide a sustainable solution to
employment challenges and national skills gaps.
500 employees - each have gross salary of £20,000.
Payroll: 500 x £20,000 = £10,000,000
Levy amount: 0.5% x £10,000,000 = £50,000
£50,000 - £15,000 = £35,000 annual payment.
250 employees - each have gross salary of £20,000.
Payroll: 250 x £20,000 = £5,000,000
Levy amount: 0.5% x £5,000,000 = £25,000
£25,000 - £15,000 = £10,000 annual payment.
150 employees - each have gross salary of £20,000.
Payroll: 150 x £20,000 = £3,000,000
Levy amount: 0.5% x £3,000,000 = £15,000
£15,000 - £15,000 = £0 annual payment.
100 employees - each have gross salary of £20,000.
Payroll: 100 x £20,000 = £2,000,000
Levy amount: 0.5% x £2,000,000 = £10,000
£10,000 - £15,000 = £0 annual payment.
- The Government’s new initiative will raise £3 billion in 2019-20 and £2.5
billion will go towards UK apprenticeships.
- Investment in training for young people is set to double.
- SMEs will have ongoing support to add apprentices to their workforce.
- Upskilling of existing staff will add value and flexibility to businesses of
You can find out more about reforms to apprenticeships by visiting the
Government site - click here to view pdf>
Why choose DTS for Apprenticeships?
Experienced education providers - we have spent years working with
business upskilling existing staff on apprenticeship programmes and recruiting
hard working young people that can make an impact.
Provide a detailed training needs analysis - liaising with you to upskill your
existing workforce to meet your business objectives.
A dedicated selection process - from posting advertisements, to reviewing
CVs and interviewing candidates, we take over the time-consuming tasks. You
can choose your apprentices from our final shortlist.
Unique digital management systems - you can log onto our state-of-the-art
PEARL system to monitor recruitment and track the progression of your
apprentices. Streamline your admin procedures at no extra cost.
Dimensions Training Solutions is well-equipped to provide all the advice and
information you need to successfully respond to this Government initiative.
Discover how you can bring in new skills and upskill your current workforce to
enhance your business objectives.
Contact our friendly team to find out more about the Apprenticeship Levy and
how to redeem your digital vouchers: firstname.lastname@example.org or call: 01162 982 366