What is the Apprenticeship levy?
The levy is a type of tax paid by all UK businesses that have a payroll bill of over £3 million annually. Every month you’ll need to pay 0.5% of the revenue which then goes into a levy account. You can use the funds accumulated to invest in training an apprentice to support your business. Make sure you spend it within two years, otherwise you’ll lose it as a tax.
Don’t worry if you’ve used up your funds, the government will still pay 90% of the remaining costs, so you’ll only have to cover 10% of training. If your business doesn’t pay the levy, the government will also cover 90% of the training costs.
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