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The new Apprenticeship Levy

The Government has increased the target for the number of people it expects to complete an apprenticeship programme by 2020 and you may recently have heard the phase “Apprenticeship Levy” and wondered what it means?

The Apprenticeship Levy comes into force from 6 April 2017 and is a payment that larger companies will have to contribute towards to invest in apprenticeships.

If your company has an annual payroll bill of over £3million, you will be required to pay the Apprenticeship Levy, regardless of whether you already employ apprentices or not. 

The Levy is applicable to all employers operating in the UK (where the annual payroll bill is over £3million) and this is taken as 0.5% of the annual payroll cost on a PAYE basis. Smaller companies who do not pay the Levy will not be affected.

The College has a dedicated team of experts who would be happy to talk you through the process and give advice on the benefits of hiring an apprentice. If you would like more information or an onsite visit to discuss apprenticeships in more detail, please contact 0115 945 7260 or email

Check out the official guide on the Apprenticeship Levy here.