the apprenticeship levy from april 2017 - what you need to know

In spring 2017 the way the Government funds apprenticeships training in England for all employers is changing, with the introduction of the apprenticeship levy for all UK employers based on the annual pay bill.
The levy will support all post-16 apprenticeships in England. It will provide funding that each employer can use to meet their individual needs. The funding will be directly controlled by employers via the digital apprenticeships voucher, and firms that are committed to training will be able to get back more than they put in. The levy will be introduced 6th April 2017.
Current information known:

• The levy will be 0.5% of paybill with an allowance of £15,000.
• Levy paid on paybill in excess of £3m.
• Employers will have the responsibility to calculate, report and pay the Levy to HMRC alongside their usual PAYE payments.
• The first time eligible employers will have to declare their liability will be May 2017, for the levy due on their April payroll. Employers will then be able to see funding in their digital accounts, after their declaration to HMRC, after 22nd May 2017.
• The first payments to providers for apprentices with levy paying employers who start in May 2017 will be June 2017.
• Employers in England who pay the levy and are committed to apprenticeship training will be able to get out more than they pay into the levy, through a 10% top-up of funds to their digital account to spend in England on apprenticeships.
• Funds will expire 24 months after they enter an employer Digital Account, unless spent on apprenticeship training. The account will work on a first in, first out basis to minimise the amount of expired funds.
  

Other sources of information

HM Revenue and Customs (HMRC) have published guidance for employers that details how to calculate, pay and report against the apprenticeship levy. Or read more at NHS Employers - Apprenticeship Levy Factsheet