Apprenticeships boost the skills of the workforce and benefit employers and individuals. They give young people the chance to build a better future by taking their first step on the employment ladder and those already in work the opportunity to progress further. From 6 April 2017, the way the government funds apprenticeships in England is changing, with the introduction of the apprenticeship levy.
Only employers with annual pay bills greater than £3 million, and some connected companies and charities with pay bills less than this amount, will be required to pay the apprenticeship levy. For the purposes of the levy, an ‘employer’ is defined as someone who is a secondary contributor, with liability to pay Class 1 secondary National Insurance contributions (NICs) on the earnings of their employees.