Apprenticeship Levy

From 1st May 2017 the Government has changed the way that apprenticeships are funded.

The apprenticeship levy was introduced as a way of ensuring that large employers are financially contributing to the growth of apprenticeships. If you are an employer with a pay bill over 3 million each year it is a mandatory requirement to pay the apprenticeship levy from 6th April 2017. You will report and pay your levy to HMRC through the PAYE process. To use the apprenticeship service, you will need to register and create an account to access the levy funds.

What can you spend your levy funds on?

You can only use funds to pay for apprenticeships training and end point assessment(s) and only up to the maximum funding band for the chosen apprenticeship.

Can levy funds be shared?

From April 2018 the ESFA plan to allow levy paying employers to transfer levy funds to other employers via the apprenticeships service. Initially, you will be able to transfer 10% of the annual value of funds entered into your levy account. If your company is made up of a group of companies paying the levy together, your group can set up a single shared account to pull your funds.

How long do I have to spend my funds?

From when the money was deposited in your levy account, you only have 24 months to spend it. It is crucial that you make the most out of your funds or it will be wasted- ABM Training can advise you on how to effectively spend your funds so you don’t miss out!

Setting up your levy account:

Click here to setup and manage your Digital Account!

Apprenticeship Employer Helpline:

To find out more about your digital account then please click here or alternatively you can contact the helpline on nationalhelpdesk@apprenticeships.gov uk or 08000150600.

Latest
Funding Options

Type of Employer16-18 or
19-24 who were formerly in care or hold an Educational and Health care plan. (EHCP)
19 +
19-24 who were not formerly in care or do not hold an Educational and Health care plan. (EHCP)
Levy paying
(Pay bill of £3 million or more. These Employers will be required to pay 0.5% of their annual payroll into the Levy)
Fully funded from the employer's Apprenticeship Levy pot. If the pot runs out then moves to the co-investment funding method below.
£1000 incentive paid to the employer

100% funded by Levy
£500 at 90 days and £500 at 365 days
Fully funded from the employer's Apprenticeship Levy pot. If the pot runs out then moves to the co-investment funding method below.


100% funded by Levy
Non-Levy paying 50+
Over 50 employees
Co-investment funding method:

90% funded by the Government and 10% to be paid by the employer.
£1000 incentive paid to the employer

£500 at 90 days and £500 at 365 days
Co-investment funding method:

90% funded by the Government and 10% to be paid by the employer.
Non-Levy paying 50-
Under 50 employees
Fully funded by the Government:

100% funded by the Government
£1000 incentive paid to the employer

£500 at 90 days and £500 at 365 days
Co-investment funding method:

90% funded by the Government and 10% to be paid by the employer

Last updated on June 1, 2018 6:23 am

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