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

Exporting goods ― proof of export

Exporting goods ― proof of exportIn addition to the requirements laid down in the Exporting goods ― overview guidance note, businesses intending to zero-rate exported goods must hold satisfactory evidence that the goods have been delivered to a destination outside of the UK. If satisfactory evidence

15 Dec 2020 14:02 | Produced by Tolley Read more Read more

Bare trusts ― income tax and CGT

Bare trusts ― income tax and CGTThis guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax

14 Jul 2020 15:34 | Produced by Tolley Read more Read more

Capital allowances on cars

Capital allowances on carsSummary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions of 50g/km and below 18%CAA 2001, s 104AASecondhand cars with CO2

14 Jul 2020 11:08 | Produced by Tolley Read more Read more