Apprenticeship Levy Funds

Digital Apprenticeship Service

For those with a pay bill of less than £3 million, will not be able to use the Digital Apprenticeship Service until 2018 or 2019. However from April 2017, there will be a requirement to co-invest and make a financial contribution towards the cost of any apprenticeship programmes in your business.

Non-levy Payers

For employers who do not pay the apprenticeship levy, a Digital Apprenticeship Service account will not need to be set up. A price will be agreed with a training provider, in addition a contribution will be payed towards the costs of the training and assessment to the training provider directly. This gives employers more time to prepare for the new system.

Apprenticeship Levy Payers

The training and development budget will need to be looked at, in order to identify ways in which this can be delivered through the levy.

The advanced/higher Apprenticeship standards cover the core skills, knowledge and behaviours required. This is for more senior or technically challenging positions within a business and therefore can be used to enhance staff development programme.

How is the Apprenticeship Levy paid?

1. Payroll department will calculate, report and pay the levy to HMRC, through the PAYE process alongside Income Tax and National Insurance

2. Single employers with multiple PAYE schemes will be added together in levy calculations

3. Employer’s Levy payments will be recorded on the Digital Apprenticeship Service website where the account can be accessed at any time. NowSkills can help you set this up.

Apprenticeship Levy: Your Digital Account

Online tools will be available for employers via the Digital Apprenticeship Service over the next year. Therefore employers will be able to register to create an account from January 2017.
In addition, Levy-paying employers will be able to use the service to pay for the training of apprentices from April 2017. Furthermore, employers need to verify their PAYE schemes and link them to their account. Also, more than one account will be available to use if employers wish to keep their schemes separate.

When will funds appear in your digital account?

Funds appear in a digital account monthly so a few working days after a pay bill has been confirmed. This includes the levy contribution to HRMC for the previous month.

Therefore, the first time you will see any funds in your digital account will be late May 2017.

Your Apprenticeship Levy Funds

Expiry of apprenticeship levy funds

Levy funds expire 18 months after they enter an account unless they are spent on apprenticeship training. Furthermore, Levy spend will be applied on a first in, first out basis and applies to any top-ups in a digital account.

Funding for English and maths training

Apprentices who do not already have the GCSE grades in English and Maths – will need to complete functional skills. This is funded by the Government.

Funding for 16-18 year olds

Employers are still encouraged to take on 16–18 year old apprentices, due to this – an extra incentive will be payed to the employer. Please enquire for more information.