Transfer Levy Funds
Employers are now able to transfer levy funds to other employers, in order to pay for their Apprenticeships training and assessment where funding is not available.
Some employers pay more into their levy account than they can use. If the funds are unused after 24 months the monies are claimed by the HM Treasury.
Therefore, many levy-paying employers choose to transfer their levy funds to employers who share their values or are perhaps in their supply chain. The funds can be used to help local businesses in the community or support a young person with their apprenticeship funding.
Transfers are often positive public relations exercises too, as levy paying employers can support their communities and support young learners with furthering their education and enhancing their skills.
How can NowSkills help?
NowSkills offer their services to help you transfer your levy funds to benefit local employers and help support apprentices.
To find out more, please do to get in touch, we’d be happy to help!
How much levy funds can you transfer?
Since April 2019, levy-paying employers have been able to transfer up to 25% of their annual levy funds. Employers can transfer levy funds from their apprenticeship account to as many employers as they want.
The apprenticeship service calculates this 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 do Levy funds cover?
Employers must be made aware of the followings prior to transferring or receiving any levy funds:
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
Employers have to be registered on the apprenticeship service in order to receive or transfer levy funds
A transfer can only be used to pay for training and assessment for apprenticeship standards
Transfers can only be used for new starts