1. Home
  2. Blog
  3. Pay And Benefits
  4. Do Employees Pay Apprenticeship Levy

Do Employees Pay Apprenticeship Levy

The government created the Apprenticeship Levy in April 2017 to support apprenticeship programmes throughout the UK by enabling companies to recoup a portion of the costs associated with teaching apprentices.

The charge is a small tax levy paid by all companies with an annual wage spend of more than £3 million. The tax is 0.5 per cent of the gross payroll of the business. 

In addition to income tax and National Insurance, it is paid to HMRC. If several firms join a group, the total payroll is used to calculate the charge – this prevents corporations from dividing into numerous smaller companies with wage bills below £3m to avoid paying the levy.

Updated on August 29, 2022

Was this article helpful?

Related Articles