> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://clipper.crisp.help/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# Apprenticeship Levy

**The Apprenticeship Levy is a tax that some UK businesses have to pay**

**Who has to pay?** Businesses with a payroll of more than £3 million a year.

**How much do they pay?** They pay 0.5% (half a percent) of their total employee wages to the government.

**Why do businesses have to pay this tax?** The government uses this money to fund training programs for new workers, called apprenticeships.

**How this relates to your payment coming through an Umbrella Company?**
Specialist payroll umbrella companies like ourselves also incur this levy. We will deduct a small amount from the contracted sum each week to cover our contribution to the Levy. The recruitment agency factors this cost in to the contract sum they send us each week, alongside the other emploment costs. Your assignment rate is therefore calculated with this in mind.

You'll see this on your payslip, under "employment costs”.