News article

Introduction of the Apprenticeship Levy

13 April 2017

The Apprenticeship Levy applies to all employers who have an annual pay bill of more than £3 million

The UK wide Apprenticeship Levy came into effect on 6 April 2017 and applies to all employers in the UK in both public and private sectors.

The Levy is a reserved matter for the UK Government. It will only be paid on annual pay bills in excess of £3 million and will be charged at a rate of 0.5 per cent of an employer’s pay bill. Each employer will receive an allowance of £15,000 to offset against their Levy payment. 

The Levy will be collected by HM Revenue and Customs (HMRC) via the PAYE system and specific queries should be directed to them. Read GOV.UK guidance on paying the Levy.

Apprenticeship training in Northern Ireland
The Levy is a reserved matter applicable throughout the UK, however, each country within the UK has its own approach to delivering and funding apprenticeship training to meet its own particular priorities.

In Northern Ireland, employers currently may benefit from the ApprenticeshipsNI programme or from Higher Level Apprenticeships. Read more on Apprenticeships for employers.

The Department for the Economy is also introducing changes to Northern Ireland’s apprenticeship system in accordance with the two complementary strategies Securing our Success and Generating our Success.