If your payroll is less than £3 million, you will not automatically pay into the apprenticeships levy and are therefore a non-levy employer.
The Government will fund 95% of the apprenticeship course, the remaining 5% will be invoiced to the employer by the training provider at the start of the apprenticeship.
At present, non-levy employers can have a maximum of 10 apprentices at any one time.
Non-levy employers can apply to levy paying companies for a Levy Transfer.
Receiving levy transfer funds (for non-levy employers)
If you do not pay the apprenticeship levy, you may be able to receive levy transfer funding to fully fund an apprenticeship.
How it works:
• Transferred funds pay for 100% of training and assessment costs
• Funding applies for the entire length of the apprenticeship
• You must decide which apprenticeship standard and level you want before applying
You can search for available levy transfer opportunities on the Government’s pledge page, filtering by:
• Location
• Sector
• Apprenticeship type
• Apprenticeship level
Important information:
• The transferring employer will review and accept or reject your application
• Funds can only be used for a new apprenticeship start
– This can be a new or existing employee
– The apprentice must not have already started an apprenticeship
Exception: If an apprentice changes employer, they may continue their apprenticeship using transferred funds
How payments work
• Transfer payments are made monthly into your apprenticeship account
• Transferred funds are prioritised over the sending employer’s own apprenticeship payments
• If the sending employer does not have enough levy funds available, you may need to pay the remaining cost through employer co-investment
