What is the apprenticeship levy?

The Apprenticeship Levy came into effect from April 2017. It is a levy on UK employers to fund new apprenticeships which aims to boost investment in vocational skills training.

All employers with annual pay bills above a certain level must pay the Apprenticeship Levy. It is currently charged at a rate of 0.5% of the taxable pay element of a worker’s payslip.

Any umbrella worker working through a compliant provider will have this deduction. Some umbrella companies do not show it as a distinct entry on the payslip, but instead, add it to the Employers NI value. They then show both as one amount and “label” it as employment costs. At Husp, we have chosen to make it clear what all the elements on your payslip are. This means you can easily see how the calculation has been made.

You can find out what all of the payments and deductions on your umbrella company payslip are by checking out our guide here. And You can find full details of the apprenticeship levy rules on the government website.