Are you a small to medium-sized enterprise (SME) thinking about taking on an apprentice but not sure if you can afford the training costs?
This is a great opportunity for SME’s to explore transferring of Levy funds to drive their talent forward with apprenticeship training.
How transferring funds works
Employers who pay the apprenticeship levy and have unused apprenticeship funds can find employers who want to receive a transfer in a number of ways. For example, you could:
• work with employers you currently work with
• get in touch with other employers in your industry
• get in touch with an Apprenticeship Training Agency (ATA)
• work with regional partners
How much can be transferred
From April 2019, levy-paying employers can transfer a maximum amount of 25% of their annual funds. They can make transfers from their apprenticeship account to as many employers as they choose.
The apprenticeship service calculates this amount by:
• the total amount of levy declared in the previous tax year
• with the English percentage applied
• plus the payment of 10% from the government
What transfers can pay for
Transferred funds will be used to pay for the training and assessment cost of the apprenticeships agreed with the receiving employer.
Sending and receiving employers need to know that:
• funds are paid monthly for the duration of the apprenticeship
• only levy-paying employers can make a transfer
• any employer can receive and use transferred funds
• sending and receiving employers have to be registered on the apprenticeship service
• a transfer can only be used to pay for training and assessment for apprenticeship standards
• transfers can only be used for new starts, except where the apprentice is changing employer and an agreement to continue their apprenticeship with their new employer is through a transfer of levy funds.
For full details please visit: https://www.gov.uk/guidance/transferring-apprenticeship-service-funds