At East Coast College, we make hiring an apprentice straightforward. Our experienced team will support you throughout the process, from identifying your recruitment needs and finding suitable candidates to providing ongoing guidance throughout the apprenticeship.
The result is a skilled, qualified and committed employee who understands your business, works to your standards and is equipped to make a meaningful contribution. Apprenticeships are a cost-effective way to address skills gaps, increase productivity and build a strong pipeline of future talent, helping your business thrive now and in the future.
Apprenticeship Levy
The Apprenticeship Levy was introduced by the Government to help employers invest in developing a skilled workforce. Employers with an annual pay bill of more than £3 million contribute 0.5% of their payroll into the levy, with funds made available through a digital apprenticeship account to pay for approved apprenticeship training and assessment.
Rather than being an additional cost, the levy gives eligible employers the opportunity to invest in their workforce by using these funds to train existing employees, recruit new apprentices and develop the skills their business needs for future growth. Making the most of your levy funding can help your organisation build talent, improve productivity and address skills gaps across your workforce.
When do you need to pay the levy?
You will need to pay the Apprenticeship Levy if:
- Your organisation has an annual payroll of more than £3 million, or
- Your organisation is connected to other companies or charities through the Employment Allowance, and your combined annual payroll exceeds £3 million
Your annual payroll includes all payments to employees that are subject to Employer Class 1 Secondary National Insurance Contributions (NICs), including:
- Salaries and wages
- Bonuses
- Commissions
The following are not included in your annual payroll calculation:
- Earnings paid to employees under the age of 16
- Earnings paid to employees who are not subject to UK National Insurance legislation
- Payments that are subject to Class 1A National Insurance Contributions, such as benefits in kind
How much do you need to pay?
Employers who are not connected to another company or charity receive an annual Apprenticeship Levy allowance of £15,000. This allowance reduces the amount of levy payable each year, which means employers generally only pay the Apprenticeship Levy if their annual pay bill exceeds £3 million.
The £15,000 allowance cannot be carried forward into the next tax year. If your organisation is connected to other companies or charities, the allowance must be shared between all connected organisations.
If you become an employer or stop employing staff during the tax year, you can still claim the full £15,000 allowance against any Apprenticeship Levy you owe.
How to Hire an Apprentice
Contact our Apprenticeship team to discuss your vacancy and specific requirements using the form below.
