If you have a company pay bill of over £3 million, then you are required to pay the Apprenticeship Levy. This is a requirement by government and means you must contribute 0.5% of your annual pay bill to taking on apprentices.
Often, levy paying employers don’t use all the apprenticeship levy they pay, and they can transfer up to 25% of their levy to another employer or return to general taxation.
The Apprenticeship Levy money can only be used to pay for apprenticeship training, this does not include apprentice wages and any other costs associated with employing an apprentice.
Understanding how the levy transfer system works ensures we can continue to train a competent and skilled workforce who can keep our industry alive.
Transfers are arranged through The Apprenticeship Service (TAS) portal, please refer to the link below for guidance.
Any unused levy expires after 24 months and is returned to HMRC.
Employers can request funding from another employer or from the Education and Skills Funding Agency (ESFA).
No. Apprenticeship levy can only be used to pay for the cost of apprenticeship training courses.
The apprenticeship levy is a form of taxation introduced by the government in 2019 to help companies offer more apprenticeships. It was introduced to benefit businesses by boosting essential training and developing apprenticeship programmes.