Apprenticeship Levy

Is it a good investment?

The Levy and any allowance due will be calculated monthly and collected as part of the HMRC RTI Return (in the same way as Employers NI). The Government will also pay a 10% Top Up on your Levy contributions. This means you will get 110% of what you pay in, so by talking to TDR we can help you plan effectively to ensure you get the full return on your investment.

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

The co-investment rate has changed for new apprenticeships starting on or after 1 April 2019. You will now pay 5% of the cost of apprenticeship training. The government will pay the rest up to the funding band maximum.

What do I need to know?

The government will move from apprenticeship frameworks to standards by 2020. All frameworks will be withdrawn by 2020 to 2021 academic year. The last date for new starts for all remaining live apprenticeship frameworks will be 31 July 2020. All starts from 1 August 2020 will be on new, employer-designed standards which will replace frameworks.

Fifteen funding bands have been created for these apprenticeship standards and depending on the apprenticeship type and level, the 5% contribution from employers will range from £150 to £270. Employers with less than 50 employees will be able to train 16-18-year-old apprentices without paying any contribution towards training.