Growth and skills levy (apprenticeship levy)

Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Growth and skills levy (apprenticeship levy)

Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
imgtext

Introduction

The apprenticeship levy was introduced in Finance Act 2016 and applies as from 6 April 2017. The rate of levy is 0.5 % of paybill, offset by a £15,000 ‘levy allowance’. This means that, in effect, it applies only to employers who have an annual paybill of £3 million or more a year.

The Apprenticeship Levy was in turn renamed as the Growth and Skills Levy, in April 2025. The changes introduced under the Growth and Skills Levy relate, primarily,.to the types of training courses which may be funded by the Levy, with the employer payments required towards the Levy remaining unchanged.

The Growth and Skills Levy (formerly known as the apprenticeship levy) payment regime is run by the by the Department for Education. However the employer payments side of the Levy is administered by HMRC as part of the RTI system, alongside PAYE tax and NIC.

The money raised by the levy goes into a special training fund which is topped up by government with the aim that it can be accessed

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+
  • 24 Oct 2025 13:10

Popular Articles

Qualifying charitable donations

Qualifying charitable donationsCompanies can obtain corporation tax relief for qualifying payments or certain transfers of assets to charity under the qualifying charitable donations regime. Definition of qualifying charitable donationThe definition of ‘qualifying charitable donations’

14 Jul 2020 13:03 | Produced by Tolley Read more Read more

Long service awards

Long service awardsEmployee recognition by an employer can be an important motivational tool, as well as having a positive effect on retention. Most employer awards made to an employee are treated as taxable earnings under ITEPA 2003, s 62 or as a benefit under ITEPA 2003, s 201 because they are

14 Jul 2020 12:11 | Produced by Tolley Read more Read more

Computation of corporation tax

Computation of corporation taxCompanies pay corporation tax on the taxable total profits (TTP) generated in a chargeable accounting period (CAP).To ascertain whether the entity is within the charge to corporation tax, see the Charge to corporation tax guidance note.For more information on the type

14 Jul 2020 11:16 | Produced by Tolley Read more Read more