What is the Apprenticeship Levy?

In line with the government’s commitment to developing the skills for tomorrow, the Apprenticeship Levy encourages employers to invest in Apprenticeships.

The levy will help to deliver new apprenticeships, support quality training and give control to employers. Those who are committed to apprenticeship training and workforce development will see additional returns via the levy.

The system is designed to boost the economy, create and develop a more technically-skilled workforce and ensure that large employers invest in learning and development for their employees. It will enable more people to progress into more senior, technically-challenging job roles.

From 6th April 2017, employers will send data to HMRC and then the new system start from the 1st of May. Some employers will be required to pay for apprenticeships through the apprenticeship levy pay bill tax or through a co-investment cash contribution.

Apprenticeship Levy Management

Estio Training is one of the largest providers of IT & Digital apprenticeships in the UK. We are the first training provider to deliver the full range of IT and Digital standards apprenticeships. In addition, we have a dedicated team who focus on advising levy paying organisations on the impact of the levy and the best strategies to provide a return on levy investment.

As a result of our approach, Estio is the apprenticeship training provider of choice in IT & Digital for the likes of Sky, Yorkshire Building Society, BNP Paribas, AJ Gallagher, Covea Insurance, NHS and Asda to name a few. We are the industry experts in designing bespoke IT schemes for employers and are well positioned to support and advise you through the levy and apprenticeship process.

We provide expert advice on the Apprenticeship Levy and can help you get a return on your investment.
Our experienced team can help you build a strategy to recruit future apprentices and utilise your digital funds.
Contact the Estio Apprenticeship Levy Team on 01133 500 333.

How will the Apprenticeship Levy affect you?

Category 1

Do you have less than 50 employees and a salary bill of less than £3 million?

  • You won’t make any contribution to the apprenticeship levy
  • Funding can be used to upskill employees (including graduates), or to recruit apprentices aged 16-18, for learners aged 19+, you will be required to make a 10% contribution to training costs
  • You will receive a £1,000 cash incentive for recruiting an apprentice aged 16-18
  • Any member of staff under the age of 25 who is enrolled on an apprenticeship programme will not be subject to national insurance contributions

Category 2

Do you have more than 50 employees and a salary bill of less than £3 million?

  • The government will contribute to 90% of your training costs, you will contribute the final 10%
  • 10 % payment will be made upfront to training provider
  • Funding can be used to train up existing staff (including graduates), or to recruit apprentices of any age
  • You will receive a £1,000 cash incentive for recruiting an apprentice aged 16-18
  • Any member of staff under the age of 25 who is enrolled on an apprenticeship programme will not be subject to national insurance contributions
  • If you fit into this category, please see our 10% contributors’

 Category 3

Do you have a salary bill of more than £3 million?

  • You will contribute 0.5% of your annual salary bill into the apprenticeship levy
  • The 0.5% will be paid through a payroll tax
  • Funding can be used to train up existing staff (including graduates), or to recruit apprentices of any age
  • You can access your funds through an online digital account
  • These funds will expire after 24 months
  • For every £1 that enters your digital account, you will get £1.10 to spend through a 10% top-up from the government
  • Any member of staff under the age of 25 who is enrolled on an apprenticeship programme will not be subject to national insurance contributions
  • For more information on how the levy will be paid and how to claim back your funds, please see our dedicated page for levy payers.

Let our team of Apprenticeship Levy experts advise you. Call us on 01133 500 333.