Levy Information
As an employer with a pay bill of more than £3 million, you’re required to pay the apprenticeship levy. You can manage funds using the apprenticeship service and spend it on training and assessing your apprentices.
The government will apply a 10% top-up to the funds you have in your account.
If you don’t have enough funds, you just pay 5% of the outstanding balance and the government will pay the rest. This is up to the funding band maximum allocated to each specific apprenticeship.
For apprentices that started before 1 April 2019, you need to contribute 10%.
If you exceed the funding band maximum, you’ll need to pay all the additional costs.
If you don’t already have an account, find out how to set up an apprenticeship service account as an employer.
If your pay bill is under £3m each year, you are a ‘Non-levy paying employer’ but still share the cost of training and assessing your apprentices with the government - this support with apprenticeship costs is called ‘co-investment’.
The co-investment rate has changed for new apprenticeships starting on or after 1 April 2019. You will now pay 5% towards the cost of apprenticeship training. The government will pay the rest (95%) up to the funding band maximum.
All apprenticeships that started before 1 April 2019 will continue at the previous co-investment rate of 10%.
If you do not pay the levy, you won’t be able to use the apprenticeship service to pay for apprenticeship training and assessment until at least mid-2019, unless you are receiving a transfer of funds from a levy-paying employer.
Instead, you’ll need to agree on a payment schedule with the provider and pay them directly for the training. The provider must prove that you have paid your contributions as a condition of the government paying its contribution.
Contact the Marketing team for more details on 01706 631 417 or email marketing@rochdaletraining.co.uk
