The Apprenticship Levy
The apprenticeship levy is a government initiative to fund apprenticeships.
Key aspects of the apprenticeship levy
- Any businesses with a paybill in excess of £3 million per annum must pay the apprenticeship levy. The levy is charged at a rate of 0.5% of an employer’s paybill.
- The apprenticeship levy is payable regardless of whether you employ apprentices or not.
- The apprenticeship levy is collected by HMRC, directly via the PAYE process, alongside Income Tax and National Insurance.
- Any business paying the apprenticeship levy will receive £15,000 allowance per tax year to offset against the levy payment
- The Government will provide 10% monthly top ups to apprenticeship levy payers who employ apprentices.
- Apprenticeship Levy funding can only be spent on apprenticeship training and end point assessment with approved providers
- No organisation is exempt, the private and public sectors are subject to the apprenticeship levy.
- For both apprenticeship levy paying and non levy paying employers, funds will be accessed through the Apprenticeship Service and you will need to create an account
- Non-apprenticeship levy paying employers will co-invest with the government to pay for apprenticeships. The co-investment rate for with employers is to contribute 5% and government will contributing 95%. The same model will apply to levy-payers who have exhausted their funds.
Next Steps
To find out more about how Apprenticeship programmes can support your business please contact us via:
Tel: 0208 6077850 or
Email: hello@dynamictraining.org.uk
Online Enquiry form: Click here
Please click the image below to download our in-depth pdf guide to the apprenticeship levy and apprenticeship service accounts.

Further information on apprenticeship funding and how it will work is available on GOV.UK. Please click here to follow the link.