Apprenticeship Levy and reform

Blackburn College UK PRN No. 10000747

The Apprenticeship Levy has replaced all taxpayer funding of Apprenticeships for both public and private sector companies of all sizes.

If your annual business payroll exceeds £3 million you will pay the Apprenticeship Levy. Full information is available on the Government website

How we can help

We can help you better understand the levy by offering advice and guidance specifically tailored to your business. Our dedicated team can offer you:

  • Information on how your business can benefit from the Levy
  • Training Needs Analysis
  • Apprentice recruitment support
  • Workforce development for your existing staff

Why Choose Blackburn College?

  • Our dedicated Apprenticeship team can provide full recruitment support
  • All Apprentices have access to our industry standard training suites or can be trained on your premises      

Estimate my apprenticeship funding

Use this tool to estimate if your organisation will pay the apprenticeship levy.

The Apprenticeship Service (TAS) Digital Account

If you are a small employer employing less than 50 people your apprenticeships would be fully funded by the government for 16-18 year olds and you would be eligible for an incentive of £1000. If you employ over 50 people or your apprentice is aged 19 and over then 5% contribution would be charged and the fee would be expected to be paid in full at the beginning of the apprenticeship.

To enable you to get funding for your apprenticeship you will need to reserve funding through the TAS Digital Account. The apprenticeship service has done a quick video to help you set the account up. To do this you will need to create an account; you will need your PAYE details to set this up fully. Once the account is live you will need to reserve funding for your apprenticeship; please enter the apprenticeship Standard details and the Month expected to start. We will work with you to add the learner details onto the system and once agreed all you need to do is authorise on the account

What funding is available to an employer towards training costs?

The size of the contribution varies depending on the apprenticeship undertaken. If you are a non-Levy payer and you employ less than 50 people 100% of the cost of apprenticeship training will be funded if the apprentice is aged 16–18 years old.  If the apprentice is over 19 then you will pay 5% of the costs.

  • If your apprentice is 16-18 then you will receive a £1,000 incentive.
  • If you are a levy payer and you don’t have enough funds in your account then the apprenticeship fee for that month will be reduced to 5% and the government will fund the remaining 95%.

Please note: Employers are responsible for paying their apprentice(s) wages.

Since April 2018 employers who pay the apprenticeship levy have had the option to fund apprentices in another organisations by making a transfer.  Transfers were introduced to give levy-paying employers more flexibility in how they spend their apprenticeship service funds and help larger employers to support smaller employers in taking on apprentices.

 

How to add Apprentices and set up payments

 

Transfer of levy funds

Since April 2018 employers who pay the apprenticeship levy have had the option to fund apprentices in another organisation by making a transfer.

Transfers were introduced to give levy-paying employers more flexibility in how they spend their apprenticeship service funds and help larger employers to support smaller employers in taking on apprentices.

Currently employers can transfer up to 25% of their annual funds to one other employers to pay for apprenticeship training.

  • Levy-paying employers who use the apprenticeship service can now see their transfer allowance in their account.
  • They have been able to make a transfer to one other organisations from May 2018 the receiving organisation will be able to start adding apprentices from the same date.
  • Training providers were then paid for these transfers from June 2018.
  • The apprenticeships are approved by the sending employer before payments are made.
  • Funds are transferred monthly for the duration of the apprenticeship.

Need more Information?

We can help your business navigate these important changes and ensure you secure the very best training. Contact us on 01254 292500, email business@blackburn.ac.uk, or complete the contact form below.

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