The Apprenticeship Levy is a UK government initiative introduced in April 2017 to encourage employers to invest in apprenticeship training.
The levy applies to all employers with an annual PAYE payroll of over £3 million, and is charged at 0.5% of the total pay bill. Employers receive a £15,000 annual allowance, which means the levy is only payable on the portion of the payroll exceeding this threshold.
Payments are made monthly to HM Revenue and Customs (HMRC) through the Pay As You Earn (PAYE) system.
Levy-paying employers can then access their funds through the Apprenticeship Service (Digital Apprenticeship Service) to pay for apprenticeship training and end-point assessment. These funds expire 24 months after they enter the account if they are not used.
Non-levy employers do not pay the levy but can still access government funding through co-investment or full funding (for apprentices aged 16–21 from August 2025).
Further official information on how the levy works can be found here:
👉 Manage apprenticeship funds – GOV.UK
Why Choose Apprenticeships
Apprenticeships offer a proven, cost-effective way to develop the skills your business needs both now and in the future. They enable employers to:
- Recruit and train new talent
- Upskill existing staff
- Build a motivated, qualified workforce
- Retain valuable employees through clear career progression routes
Levy funds can be used to train new apprentices or existing employees, and there are no upper age limits.
You may also be eligible for a £1,000 government incentive when you employ or enrol an apprentice aged 16–18, or aged 19–24 with an Education, Health and Care (EHC) plan.
How Levy Funds Can Be Used
Funds in your Apprenticeship Service account can be used to cover the full cost of apprenticeship training and the End-Point Assessment (EPA).
Funding cannot be used for wages, travel expenses, or other costs associated with employment, only the training and assessment fees.
Apprentice Team Ltd is an approved government training provider, working with levy-paying and non-levy employers across the UK. We deliver high-quality, industry-relevant training with excellent success rates and strong employer feedback.
Off-the-Job Training and End-Point Assessment
Employers must allocate time each week for apprentices to complete off-the-job training. At least 20% of the apprentice’s contracted hours must be spent away from day-to-day duties undertaking learning activities relevant to their apprenticeship. This may include:
- Practical skills development
- Theoretical learning and classroom sessions
- Written assignments or project work
At the end of their apprenticeship, each learner must complete an End-Point Assessment (EPA) to demonstrate the skills, knowledge, and behaviours they have gained. EPAs may include:
- Knowledge assessments
- Practical observations
- Portfolio-based interviews or presentations
Why Choose ATL
If you are paying the Apprenticeship Levy, you’ll want to achieve the best possible return on your investment.
At ATL, we work with a trusted network of high-quality training providers to deliver cost-effective apprenticeship solutions tailored to your organisation’s goals. With over 10 years’ experience in the sector, we pride ourselves on providing a professional, reliable service across a wide range of industries and job roles.
We offer:
- Impartial advice and guidance to help you maximise your levy funds
- A full organisational needs analysis to identify suitable programmes
- A free recruitment service to support new apprentice hires
- Regular learning sessions every 2-6 weeks from qualified tutors to monitor progress and provide ongoing support
For further advice and guidance, please contact our team:
01246 278931
info@apprenticeteam.co.uk
or complete the contact form below.
