enquiries@scarboroughtec.ac.uk 01723 372105 | Current students and staff Apprenticeship Levy About the Levy Are you a levy or non-levy employer? You can get help from the government to pay for apprenticeship training. The amount you get depends on whether you pay the apprenticeship levy or not. You pay the levy if you’re an employer with a pay bill over £3 million each year. As a non- levy apprenticeship employer, you pay just 5% towards the cost of training and assessing an apprentice. The government will pay the rest up to the funding band maximum. You’ll pay the training provider directly and agree on a payment schedule. If you employ fewer than 50 employees, the government will pay 100% of the apprenticeship training costs up to the funding band maximum for apprentices aged: 16 to 18 19 to 24 with an education, health and care plan provided by their local authority or has been in the care of their local authority If you exceed the funding band maximum, you’ll need to pay all the additional costs. Find out more about funding an apprenticeship for a non levy employer. Step 1 HMRC collects the levy payment monthly through PAYE Step 2 Funds in Digital Apprenticeship Service (DAS) account. The government top-up your levy pot with a further 10% of funding Step 3 Member of staff joins apprenticeship programme Step 4 Apprentices receive their training and assessments Step 5 Monthly deductions from DAS account Step 6 Any unused levy funds expire after 24 months Calculate what you will pay The levy will only impact your business if you have a pay bill of over £3m, which is based on the total amount of earnings subject to Class 1 secondary employers NIC. Each employer will have an allowance of £15,000 to offset against their levy payment and the levy will be deducted on a monthly basis, where your pay bill is over £250,000. Calculate how much your levy payment will be for your business by using our levy calculator. What is the company's annual wage bill? Levy Sum: 0.5% x (wage bill) = £ Subtracting levy allowance: £ - £15,000 Annual levy payment: £ Examples of what you might pay Employer A has 250 employees, who each earn £20,000 The employer will have a pay bill of £5,000,000 The government will take 0.5% of £5,000,000 totalling £25,000 The employer receives a £15,000 allowance to offset against the levy The total annual levy payment would be £10,000 Employer B has 100 employees, who each earn £20,000 The employer will have a pay bill of £2,000,000 The government will take 0.5% of £2,000,000 totalling £10,000 The employer receives a £15,000 allowance to offset against the levy The total annual levy payment would be £0 Contact Scarborough TEC Term Dates About Scarborough TEC Our Campus Scarborough TEC News Student support Open Events Higher Education personalised open events NINETEEN09 Restaurant Start | Online careers platform About TEC Partnership Careers Service Policies Governors Safeguarding Safeguarding Policy Equality & Diversity IMAGE – Hair and Beauty Institute of Technology (IoT) Accommodation BKSB Freedom of Information Feedback Provider Information 16-19 Tuition Fund Statement Modern Slavery Act Work for Us Filey Road Scarborough North Yorkshire YO11 3AZ Telephone: 01723 372105 enquiries@scarboroughTEC.ac.uk Youtube Twitter Facebook © 2021 TEC Partnership | Terms & Conditions | Privacy Policy | Accessibility Statement