Levy Company

Employers with less than 50 employees


As an employer, you’ll have to pay each month, the Apprenticeship Levy from 6 April 2017 if you have an annual pay bill of more than £3 million, this includes connected companies and/or charities.

Your annual pay bill is all payments to employees that are subject to employer Class 1 National Secondary Insurance Contributions (NICs) such as wages, bonuses and commissions. 

This include payments to:

  • all employees earning below the lower earnings limit and the secondary threshold
  • employees under the age of 21
  • apprentices under the age of 21

Your pay bill doesn’t include:

  • earnings of employees who aren’t subject to UK NICs legislation
  • earnings on which Class 1A NICs are payable, such as benefits in kind

Apprenticeship Levy is charged at 0.5% of your annual pay bill. You can use HMRC's Basic PAYE Tools to help you work out how much you need to pay. 



Employers with less than 50 employees


All employers with more than 50 employees, but not paying into the Levy. 

Non-levy paying employers will share the cost of training their apprentices with government. This is called ‘co-investment’. 

From May 2017, you will pay 5%  towards the cost of apprenticeship training and government will pay the rest (95%), up to the funding band maximum. 

For more information on Funding please visit: https://www.gov.uk/guidance/pay-apprenticeship-lev

Employers with less than 50 employees

Employers with less than 50 employees

Employers with less than 50 employees

 If employers are a small employer (fewer than 50 employees) there will be no cost towards training an apprentice who is 16-18 or aged 19-24 with an EHC plan, providing the cost of their training is within the maximum funding band. Employers who do not pay the Apprenticeship Levy will be subject to the same apprenticeship funding bands as employers who do. 

£1,000 is available to any employer taking on a 16-18 year old apprentice, or a 19-24 year old with an EHC plan – the same as for levy paying employers.

Due to recent government funding rules, if you require an apprentice that does not meet the above criteria you will need to   

co-invest in your apprenticeship programme. Whilst this is a cost to you, it can be as little as £2.88 + per week (depending on the qualification funding band)