Apprenticeship Levy Calculator

The Apprenticeship Levy is set to be introduced in April 2017 and is designed to support companies in creating and funding of three million Apprenticeship starts by 2020.

Here are some key facts on the Levy:

• The first levy payments will be due in April 2017 and will be paid through Pay As You Earn (PAYE)
• The levy will apply to any company where the salary bill is £3m or more regardless of whether they already employ Apprentices or not
• The rate for the levy will be set at 0.5% of an employer’s pay bill
• Employers will receive an allowance of £15,000
• Employers with a pay bill less than £3m will not pay anything into the Apprenticeship Funding Pot and will continue to employ Apprentices in the current way
• The levy payment will be ‘spent’ in the form of an electronic voucher that can be used to purchase training from the chosen college or training provider
• Companies who have a salary budget over £3m will pay the levy, regardless of whether they use the ‘training vouchers’ or not

Levy Calculator

All funds will be collected by HMRC and placed into the Apprenticeship Funding Pot. Companies will be able to access the funding by offering Apprenticeships to new or existing staff within their business. The funding will be paid directly to the college their company uses for training the Apprenticeship, with the Government topping up the pot by 10% for employers in England.

Employers falling under the levy payment threshold (£3m) can still employ Apprentices and will be able to access government support and funding for the Apprentice (subject to eligibility).

If you have any questions about how you can get the very best from the Apprenticeship Levy or if you would like more information on taking on an Apprentice, please contact the Apprenticeship Team on 0161 886 7461 or e-mail trafford.first@trafford.ac.uk.