If an organisation has an annual salary bill of under £3m, this classifies the organisational as a non-levy payer. Organisations with an annual salary bill of over £3m are responsible for paying the Apprenticeship levy.

Non-levy paying employers are responsible for contributing just 5% of the overall Apprenticeship cost of training and assessment. This is paid directly to the training provider. The remaining 95% costs are paid by the government. Businesses with under 50 employees may be eligible for additional support of up to 100% of costs for Apprentices aged 16-18, and 19-24 for young people with a local authority education, health and care plan, or care leavers, subject to a funding band maximum.

Large levy-paying businesses can pledge to transfer up to 25% of their unspent levy funds to their chosen organisations, who can then use these funds to cover up to 100% of the Apprenticeship costs, subject to funding band maximums.

Employers are responsible for paying the individual Apprentice for their full working hours including the Apprenticeship off-the-job hours. Pay rates are set in line with National Minimum Wage and Apprenticeship Year, or above. Organisations may be exempt from paying Employer National Insurance Contributions, depending on the circumstances.

Additional details on funding an Apprenticeship for non-levy payers can be found here Funding an apprenticeship for non levy employers (apprenticeships.gov.uk)