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levy

Apprenticeship Levy Funds Transfer Limit to Increase from 10% to 25% in April

Monday 25 February, 2019

From April, the amount of funds that levy-paying employers can transfer to other employers to support apprenticeships will increase from 10 per cent to 25 per cent.

Levy-payers can transfer funds to other employers (subject to rules), these can include an Apprenticeship Training Agency (such as SEAC), employers you currently work with, other employers in your industry or suitable employers through regional partners.

The funds being transferred can be used to support new apprenticeship programmes or to upskill an existing workforce. Naturally there are rules around this transfer of apprenticeship levy funds:

  • If you want to transfer funds, you’ll need to agree the apprenticeships that are being funded by a transfer.
  • Organisations receiving transferred funds can only use them to pay for training and assessment for apprenticeship standards.
  • Employers can’t use funds to pay for apprenticeship framework training and assessment (only new apprenticeship standards).

The amount of funds that will be available to be transferred are calculated by the apprenticeship service as:

  • the total amount of levy declared in the previous tax year
  • with the English Percentage* applied
  • plus a 10% government top-up on this amount

Transferred funds will be used to pay for the training and assessment cost of the apprenticeships agreed with the receiving employer.

Both the transferring organisation and the receiving organisation will need to set up an Apprenticeship Service Account.

More information and guidance can be found on the Government sites - Transferring unused apprenticeship funds to other employers and How to register and use the apprenticeship service as an employer

Contact us at info@se-apprenticeship.co.uk to find out how we can work to support your business/organisation to engage with apprentices.

*The English Percentage - The apprenticeship service only supports the English apprenticeship system. The amount of funds in each employer’s account will depend on how many of their employees live in England and the proportion of their paybill paid to these employees. This is called the ‘English percentage’. HMRC calculates your ‘English percentage’ from the information you provide about your paybill, and uses it to put the right proportion of levy funds in your account. Your latest English percentage will be visible in your account.