Apprentices: Taxation

Department for Education written question – answered on 4th October 2019.

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Photo of Kate Green Kate Green Chair, Committee on Standards, Chair, Committee on Privileges

To ask the Secretary of State for Education, how much apprenticeship levy was paid by levy employers in (a) May 2017 and expired in May 2019, (b) June 2017 and expired in June 2019, (c) July 2017 and expired in July 2019 and (d) August 2017 and expired in August 2019 because the funds had not been used.

Photo of Michelle Donelan Michelle Donelan Government Whip, The Parliamentary Under-Secretary of State for Education

The apprenticeship levy is collected by Her Majesty’s Revenue and Customs (HMRC). The amount of apprenticeship levy paid by employers each month is published by HMRC at the following link: https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk.

Employers in England are able to access their levy funds through their apprenticeship service account. The amount of funds expiring in employers’ apprenticeship service accounts in May 2019 was £11 million; in June 2019 it was £26 million; in July 2019 it was £44 million; and in August 2019 it was £52 million.

Employers’ levy funds are distinct from the Department for Education’s ring-fenced annual apprenticeship budget. The Department for Education’s budget is set on an annual basis to cover the costs of all apprenticeships: new apprenticeships in both levy-paying employers, and those that do not pay the levy, and existing apprenticeships for those who started in previous years. This budget is distinct from the funds in employers’ levy funds in their apprenticeship service accounts and is not affected by the value of levy funds expiring from employers’ accounts each month.

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