“The beautiful thing about learning is that nobody can take it away from you.”
― B.B. King

Apprenticeship Levy FAQ

Our Apprenticeship Levy Management Team have been asked many questions since the launch of the apprenticeship levy back in April 2017. We have put some of the most popular questions and answers below to help you get Levy ready.

Who does the Levy apply to?

The Levy is calculated on 0.5% of the payroll bill of all employees across the whole of the UK including Scotland, Wales and NI. However, employers do not need to pay the first £15k of the Levy. Therefore, the payroll bill must be £3m before an employer starts paying. That does mean that employers with around 150 reasonably paid employees will pay the Apprenticeship Levy.

When does employers pay?

The Apprenticeship Levy has been in place since April 2017. It is collected on a monthly basis, based on ‘live’ HMRC payroll data. It include all directly employed employees but not contractors. It is applied to ‘groups’ of companies but not franchisees. It is HMRC that determines the rules and does the collection of the Levy.

How does the Levy work?

The employer pays the tax and their ‘virtual’ account is credited with that amount. They are then able to pass their voucher to Pin Point Training to draw that money down for the cost of the apprenticeship training.
The government will ‘top-up’ the funds by 10%. Therefore, if a company pays £30,000 Levy they will have £33,000 in their virtual account to spend on Apprenticeship frameworks/standards.

How much can be drawn down for each Apprentice?

Each Apprenticeship programme is allocated to a band of funding. We can advise you on the level of funding for the programme you select. Payments for English and maths and additional learner support are separate payments made to the provider where necessary.

How will it work for the other nations?

Because the tax is collected by HMRC they have no way of separating out the payroll costs between the nations. The levy is collected across the UK and a formula will be used to allocate the monies between the nations. The estimate is that £3bn will be collected across the UK and £2.5bn will apply to England. Employers can spend the Levy on the employees who work in England. The nations will decide how to spend their allocations but we assume it will have to go towards funding apprenticeships. It may be a very different system from England once finalised.

Who can be trained under the Apprenticeship System?

Both existing employees and new recruits of any age, geographical location or prior attained qualifications will be eligible for an Apprenticeship. Pin Point Training can help you understand how an Apprenticeship programme can meet your training needs.

Are there any incentive to recruit 16 – 19 year olds?

There are incentives for employers if they recruit a young person aged 16-19. This will be a minimum of £1000 and there will also be additional funding to pay for their training.

How does the system work for non-Levy payers?

Smaller employers that recruit 16-19 year olds do not have to make any contribution to the Apprentice’s training. Larger employers will contribute 10% of the cost of the Apprenticeship training. The government then contribute the rest of the cost (90%). The payments are made directly to the training provider.

Which training providers are able to deliver the training for employers?

In the Levy based system the government is supporting the concept of ‘registered’ training provider and, as such, are operating a register of providers. There is a set criteria that providers must pass to be considered as a registered provider which will include Ofsted grade and track record. Pin Point Training are a provider with proven, successful methods of delivery developed over numerous years who are included on the Register of Providers.

We already have an MIS system. Will one file link to the existing systems?

One File already operates alongside several different learning management systems. We adopt a flexible approach to how One File is implemented and we will link to the existing systems where appropriate.

Once we have spent our Levy monies can we take on more Apprentices?

Yes, employers can employ as many Apprentices as they want but once the Levy pot has been spent they must contribute 10% of the total cost of delivery. In other words, the company will pay 10% and the Government will contribute the other 90% of the funding which will be drawn down by a registered training provider such as Pin Point Training.

Can we link our company induction to the qualifications in the Apprenticeship?

Yes, we can integrate the induction with the start of the Apprenticeship programme and include any elements that the company wants. We can also use the One File system to track and monitor progress through the different elements of the induction.

Can we still claim money if someone leaves after a long period
of being on an apprenticeship programme?

Yes, the funding can be claimed monthly as someone progresses through a programme and this money does not have to be refunded if they leave. However, there will be an amount of funding held back which will only be paid if the apprentices get to the end of the programme. This is likely to be no more than 20% of the total funding.


If you have any further questions please feel free to contact training@pin-point.co.uk or call on 0191 261 5205