One of the benefits of this new scheme is that government will top up the balance of your Digital Apprenticeship Service Account with an additional 10% each month.

However, what gets put in your account in the first place depends on what percentage of your workforce lives in England (defined by their home address).

The levy training fund calculation is:

(Total wages bill x 0.5% – £15,000 * % employees living in England) + 10%

There is a handy online tool available from the Skills Funding Agency which you may find useful.

Levy raised from employees living in Wales or Scotland will go back into general taxation and help fund Apprenticeships for Wales and Scotland via the Barnett formula. Wales and Scotland will be responsible for their own Apprenticeship schemes.

The government is working with the Devolved Administrations to ensure there are reciprocal arrangements for employees living in England but working in e.g. Wales.

What if I want or need to spend more on Apprenticeships?

The government actively encourages employers to invest in extra Apprenticeships.

In the future you will be able to add extra funds to your Digital Apprenticeship Service Account but for now if there isn’t sufficient funding in your account to pay the training provider, you can pay them direct.

The government will co-invest and pay 90% of these additional costs provided that the total cost paid to the training provider doesn’t exceed the funding band for that apprenticeship. If it does, then you will need to pay the entire cost.

How do I actually pay the Apprenticeship Levy?

If you have to pay the Apprenticeship Levy, you will calculate, report and pay on a monthly basis to HMRC through the PAYE process alongside tax and NICs. Your funds will appear in your Digital Account in arrears from May 2017.

What kind of apprentices will I get for my budget?

Government has revised the funding bands for Apprenticeships.

These are now based on job role and the training provision required, rather than an apprentice’s age or home address.

Funding bands show the maximum level of funding the government will co-invest or the maximum value of training funds a levy-paying employer can allocate from their account.

Funding bands offer a rough indication of what a training provider might charge but it is best to speak to them about possible costs as everyone’s needs are different.

If you agree a higher fee with your training provider (perhaps because of specific training needs) then you will need to pay them the difference in cost directly.

You can find out more information about funding bands from the apprenticeship advisors at City College Brighton and Hove by emailing

Once you’ve agreed a price, funding will be removed automatically from your account every month.

For non-levy paying employers, the 10% contribution you pay can be spread over the life of the apprenticeship. The government pays the training provider the remaining 90% through existing channels.

If you’d like some expert advice from us about the likely costs of training, you can also call 01273 667 778 ext: 2529 to speak to one of our Apprenticeship advisors.