The Facts

• 0.5% Levy contribution is only paid on gross PAYE bill in excess of £3m
• Employer allowance of £15,000 per year(= 0.5% £3m)
• Levy contributions will be collected monthly by HMRC
• If the available Levy funds are not sufficient to cover the cost of Apprenticeship training, the government will contribute 95% of the balance and employers meet the remaining 5% (April 2019)
• 5% co-investment contribution for non Levy payers (April 2019)
• Automatic government 10% top-up paid to the employers account each month
• Levy contribution that is unused will expire after 24 months
• Employers are able to transfer unused apprenticeship funds to other employers to a maximum of 10% of annual funds.  From April 2019, this amount will increase to 25%.

For more information visit Gov.co.uk

Incentives in the Levy system

• Employers employing an Apprentice aged between 16 and 18 at the start of their Apprenticeship, will receive a payment of £1,000
• Employers recruiting an Apprentice who is aged between 19 and 24 who has an education, health and care plan provided by the local authority or a 19- to 24-year-old who has been in the care of the local authority will also receive a £1,000 incentive payment. In addition 100% of the training and assessment costs will be covered.
• Employers with fewer than 50 employers will have 100% of the training and assessment costs covered when recruiting an Apprentice who is 16-18 year old.