Apprenticeship Levy

The apprenticeship levy is a tax that is taken from employers with a payroll of more than £3 million by the HMRC and this tax must be used to upskill existing staff onto apprenticeships or to recruit and employ new staff and train and support them on an apprenticeship programme.

Small and medium sized employers do not have to pay the levy tax and can access the same apprenticeship will be charged 5% of the cost of the apprenticeship programme selected and the remaining 95% cost of the program is funded by the government.


Exception for small employers who employ less than 50 people – they do not have to pay the 5% for 16 – 18 year old apprentices or for 19 – 24 year old care leavers (if criteria is met).

When the employer takes on a 16-18 year old onto an apprenticeship framework or standard, they receive £1,000 to help meet the extra costs associated with this. This will be paid to employers in two equal instalments at 3 months and 12 months.

If you would like to learn more about the apprenticeship levy or the cost of apprenticeship programs for small to medium sized employers please contact us on 01273 980260

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