Apprenticeship levy on large employers

Implementation date: 6 April 2017

In the Spending review and autumn statement 2015 the Chancellor of the Exchequer confirmed that an apprenticeship levy will be imposed on all large employers in all industry sectors, both public and private, for the purpose of raising money to meet the cost of apprenticeship training. Large employers will have to commit to spend 0.5% of their wage bill, based on total employee earnings excluding payments such as benefits in kind, which will be collected via PAYE. Employers will receive an allowance of £15,000 to offset against the payment of the levy, which means that only employers with pay bills of more than £3 million will have to pay.

Legislation for the collection of the apprenticeship levy was introduced in the Finance Act 2016.Draft Regulations have been published that set out the details of the apprenticeship levy. Guidance is available to help interpret the specific details of the requirement. Technical guidance has also been published setting out how funding will work.