In April 2017 the apprenticeship levy was introduced. Requiring all employers with salary bills of over £3 million to pay 0.5% of said salary bill into a dedicated fund; the levy can only be spent on apprenticeship training – with new or existing staff.
The payments are collected by HM Revenue and Customs on a monthly basis, and are done automatically through PAYE. Employers are able to access funding through an online account. From the time of payment, the employer has 24 months to spend it before they expire and are absorbed by the government.
To further encourage the use of this levy, the Government will offset the levy by £15,000, and will grant a 10% top-up, meaning for every £1 put in, employers can draw out £1.10.