Apprenticeship Levy

The government’s levy is quite simple to work out you can see our easy to read apprenticeship infographic click here
 
The annual payroll
 
Any company with an annual payroll over £3,000,000 there is a 0.5% levy which is held in your apprenticeship training account to pay for apprenticeship training.
 
There is a £15,000 allowance so a company with a £100,000,000 staff salary bill would pay 0.5% less £15,000 (£485,000)
  
If the company payroll bill is less than £3,000,000 and employs more than 50 people, or the levy apprenticeship training account is empty, the company will be required to make a 10% contribution towards the funding of an apprenticeship (the government will pay the remaining 90%).
 
 
 
The size of the company (staff)
 
If the company employs less than 50 staff with a payroll bill of less than £3,000,000, apprentices between the ages of 16-18 will be fully funded by the government (apprentices aged 19-23 with an education, care and health plan will also be fully funded). The company will be responsible for the 10% funding contribution for all other 19+ yr. old apprentices (the government will pay the remaining 90%).
 
 
All employer will receive a £1000 incentive for employing a 16-18 yr. old apprentice.*
 
 
 
It looks like this in a table:
 
Annual Payroll Employees How old is the apprentice? Funding
Above a £3,000,000 payroll a levy of 0.5% N/A N/A Funded 100% from Levy funds in your Digital Account.
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Less than £3,000,000 payroll PA no levy. 50-99 N/A Funded 10% by you and 90% through Government.
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 Less than £3,000,000 payroll PA no levy. 0-49 19-23 Funded 10% by you and 90% through Government.
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 Less than £3,000,000 payroll PA no levy.  0-49 16-18 (incl. 19-23 with ECHP) 100% Government funded education.
 
 *Paid £500 after 3 months on programme and £500 on completion of apprenticeship