The apprenticeship levy is payable by certain employers from 6 April 2017. The levy is charged at a rate of 0.5% of an employer’s annual pay bill. A £15,000 annual allowance for employers means that the levy is only paid by employers whose annual pay bills exceed £3m. The apprenticeship levy is administered by HMRC as part of the real time information (RTI) system. Employers pay the levy via the PAYE system. Employers who pay the levy can access funding for apprenticeships through a digital account. This fund is operational from 1 May 2017.
