With the wrap up of National Apprenticeships Week 2021, KBM will review some of the most common questions asked by employers. One of the most popular questions asked was about apprenticeship levy and how it works.

What is Apprenticeship Levy?

So what exactly is the Apprenticeship Levy? Without going too deep into it, since April 2017, employers paying a wage bill of over £3 million per year are required to pay 0.5% of their payroll each month as a levy tax. These employers are categorized as Levy-paying employers.

What can you spend Apprenticeship Levy on?

Employers can reinvest the apprenticeship levy back into the organisation in form of apprenticeship trainings and end-point assessment (the assessment of apprentices by an independent organisation, required before they can complete the apprenticeship programmes).

What does this mean for SMEs?

Employers with a wage bill of less than £3 million will not be subjected to the apprenticeship levy. As Non-levy paying employers, these organisations will still be able to access funding from the government which covers 95% of the cost towards apprenticeship training.

Another option to receive apprenticeship funding would be through a transfer of levy funds from other organisations.

What is Levy Transfer?

Levy-paying employers with a surplus of levy funds are able to make a levy transfer, which is to transfer a portion of their unused apprenticeship fund to other employers.

KBM Training and Recruitment

To help organisations utilize levy funds efficiently, KBM as a training provider has a dedicated team to advise and assist employers through the entire process for apprenticeships from start to finish.

Providing free consultation and recruitment services, KBM helps employers to pre-screen apprentice candidates, to ensure they possess the necessary requirements set by the employers and are passionate to commit to the programme. Offering a diverse range of pre-employment training, KBM supports learners with tailored programmes to ensure they are job ready to meet the needs of your business.

To find out more on how to recruit an apprentice or learn more about our apprenticeship trainings, email us at apprentice@kbmgroup.co.uk or contact us directly at 020 3621 6315