To encourage the number of apprenticeships funded by the levy, employers are now able to transfer a percentage of their unused funds to other organisations. This blog will give you an overview of how the process works and who is eligible for transfers.
How much can I transfer?
Employers can transfer up to 25% of their annual funds. This amount is calculated by taking the total amount of levy declared in the previous tax year, with the English percentage applied and the 10% government top up added. The transferring employer will need to have sufficient funds to cover the costs for the duration of any apprenticeship programmes that are agreed to.
Who can I transfer funds to?
Levy paying employers can transfer unused funds to any other organisation. You may wish to choose employers that you currently work with, or those within your supply chain. The receiving employer should not currently be transferring their own funds to others, and you will also need to take any state aid they have received in the last 3 years into account.
What can funds be spent on?
Transferred funds can only be used to pay for the training and assessment costs for apprenticeship standards. These apprenticeships need to be new starts, except where the apprentice is changing employer and the agreement to continue their apprenticeship with the new employer is through a transfer of levy funds.
How do I transfer funds?
Both parties will need to agree on the details of the transfer, including how many apprentices will be paid for and which apprenticeship standards they will be on. Funds can then be transferred online using the apprenticeship service. Once the apprenticeship starts, payments will be made to the receiving employer on a monthly basis.
For more information about the apprenticeship levy, click here.