Apprenticeship Levy 1: Schools’ 0.5% Charge


You will be aware that the Apprenticeship Levy has been introduced by Government from April 2017 and there has been guidance sent out by HR via Schools Communications on how this will work for schools of all types.

Initial discussions from the guidance felt that the best way to charge schools would be as an annual payment calculated on pupil numbers at the October Census date. However, as the Levy guidance has evolved it has become apparent that the Authority will be charged 0.5% of the pay bill on a monthly basis.

We are therefore passing the 0.5% charges directly onto the schools in this manner.

The benefits of this method are:

  1. The school will see charges in the month after the pay run.
  2. The schools will only be charged for the staff they employ in that month.
  3. Where schools convert to an academy or foundation the levy charged to the authority will reduce accordingly. Therefore schools will not see additional  charges for those that have converted and left the levy fund.

Schools will see the first of these monthly charges in the end of the May C£ASS run. It will also be necessary for schools to set up a new ledger code for Consistent Financial Reporting (CFR).

Ledger code 1610 – Apprenticeship Levy – Lump Sum (0.5% pay bill charge)

CFR                E08 – Indirect Employee Expenses

This advice is only for Maintained Community, Voluntary Controlled, and the 7 schools with pay bills over £3m that are Voluntary Aided or Foundation.

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