non levy
employers.

As an employer that doesn’t pay the apprenticeship levy, you pay just 5% towards the cost of training and assessing an apprentice.The government will pay the rest up to the funding band maximum. You’ll pay the training provider directly and agree on a payment schedule.

If you employ fewer than 50 employees, the government will pay 100% of the apprenticeship training costs up to the funding band maximum for apprentices aged:
* 16 to 18
* 19 to 24 with an education, health and care plan provided by their local authority or has been in the care of their local authority.

If you exceed the funding band maximum, you’ll need to pay all the additional costs.If your apprentice started before 1 April 2019, you pay 10% towards the cost of training and assessing your apprentice and the government pays the rest. This rate continues until your apprentice completes their training.

Hire an apprentice who has been made redundant

You can also use a new government service to help you hire apprentices who have been made redundant. Many of these apprentices may already have the skills and knowledge you need. Hiring a new apprentice in this way could mean you have a work-ready apprentice who can quickly add value to your business, shortening the time you’ll see a return on your investment.It also means you are supporting an apprentice to complete their training and achieve their apprenticeship.

If you hire an apprentice that has been made redundant, you can apply for incentive payments for hiring a new apprentice.

Paying employer National Insurance contributions 

Employers may not need to pay Class 1 National Insurance contributions for an apprentice, if the apprentice is under 25 years old, on an approved UK government apprenticeship standard or framework (these can differ depending on country) or earns less than £967 a week (£50,270 a year)

The apprentice, as an employee, will continue to pay Class 1insurance contributions through their salary, this will only benefit the employer. Read HMRC's guidance on paying National Insurance contributions. Find a business to fund your apprenticeship costsLarge levy-paying businesses who pay the apprenticeship levy can pledge up to 25% of their unspent levy funds to a business of their choice. You can apply to receive a transfer of funds to cover 100% of your apprenticeship training and assessment costs (up to the funding band maximum). You can view all live pledges using our public website. Read our guidance on GOV.UK for further information on how to apply.