What is the Apprenticeship Levy?
The Apprenticeship Levy is a government initiative introduced in the United Kingdom in April 2017. The Levy is a tax imposed on businesses across England with an annual pay bill of over £3 million.
This scheme aims to encourage them to use apprenticeship programmes to futureproof their teams by hiring new talent, and upskilling or reskilling their existing team through professional development apprenticeships.
The Levy is collected by HM Revenue and Customs (HMRC) through PAYE, just like tax and National Insurance, and employers are able to access funds through the Digital Apprenticeship Service (DAS) to pay for apprenticeship training and End Point Assessment costs.
In a nutshell, the Apprenticeship Levy aims to encourage more employers to invest in apprenticeships to address skills gaps, improve workforce productivity, and provide people with valuable training and employment opportunities.