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23RD FEB 2023

Using apprenticeship levy to reinvest back into your workforce

Employer Training and Apprenticeships Latest News

The apprenticeship levy was initiated by the UK government for all employers paying a wage bill of more than £3 million per year. The levy tax of 0.5% of your payroll is automatically collected by HMRC at the end of each month through your PAYE system.

The great news is that you can reinvest this levy back into your workforce in the form of apprenticeship training.

What is the apprenticeship levy?

The apprenticeship levy was initiated by the UK government for all employers paying a wage bill of more than £3 million per year.

If that is the case for your organisation, it means that you are already invested in the levy and pay 0.5% of your payroll each month as levy tax automatically collected by HMRC through your PAYE system.

The great news is that you can reinvest this levy back into your workforce in the form of apprenticeship training.

Who falls under the levy-paying category?

  • Smaller organisations that have bigger payrolls, a lot of recruitment companies fall under this category with temporary payrolls.
  • Companies who experience large seasonal variations in their payrolls, exceeding £250K in one month.
  • Group companies with a common shareholder but who are separate limited businesses and need to be grouped together for payroll purposes.

Who can use the apprenticeship levy?

The levy can be spent on the entire workforce new and existing and on employees of all ages, from junior members of staff to directors and business owners. It can also include those who have university level qualifications.

How can I access the levy?

In order to access your levy money, you need to set up an Online Digital Apprenticeship Service (DAS) account and sign the service agreement with Gloucestershire College as your training provider. You will then be able to receive your payment in your online account, and you can start spending it to pay for the apprenticeship training of your choice with us.

DAS account is the only way to access the apprenticeship money for your workforce development through apprenticeships.

When does the apprenticeship levy expire? 

The money will stay in your account for 24 months before it gets returned to the government and reallocated to other businesses if not spent within this period. Therefore, it is important to start the planning process early to make sure you take the full advantage of the available funding.

 

Can I use the apprenticeship levy if I'm a non-levy paying employer?

Non-levy paying employers pay 5% of the apprenticeship course cost, and the government will cover the remaining 95% through the process of ‘co-investment’.

 

Our expert Employer Training & Apprenticeship team will support you every step of the way and will make sure that the apprenticeship works for your organisation and that you make the best use of the apprenticeship funding available.

Email employer.training@gloscol.ac.uk or call 0345 155202 for a no-obligation consultation.