Using the Apprenticeship Levy Scheme
If your business is above the £3m wage threshold, you’ll pay your 0.5% contribution to HMRC each month through the PAYE system. Then, you can use all the money in your Apprenticeship Levy pot – plus the 10% top up from the Government – to pay for apprenticeship training.
To make it easier to manage the whole process, you set up an Apprenticeship Levy account online. This lets you access your funds, search for apprenticeship courses and pay your training provider.
Great News for Non Levy paying businesses
All you need to do is pay 5% towards the cost of an apprenticeship – and the Government will pay the other 95%!
If your wage bill is below £3m, you simply pay 5% of your apprenticeship training costs direct to your provider, who then apply to the Government for the remaining 95%.