What is the apprenticeship levy allowance?
The apprenticeship levy allowance refers to the annual sum of money (£15,000) all levy-paying employers are given to invest in apprenticeship training costs. This levy allowance amount is subtracted from an employer’s levy amount which is calculated at 0.5% of a wage bill in excess of £3 million per year. Allowance funds are stored in a digital apprenticeship fund and can be spent on training providers who will deliver the apprenticeship training. An employer’s levy allowance can be spent on either hiring an external apprentice or an internal apprentice as long as they are learning new skills. Connected companies are only eligible for one levy allowance between them and may find that they must contribute to an overall group allowance.