Transferring Apprenticeship Levy Funds to Other Companies
From April 2019 you’ll be able to transfer 25% of your levy funds to other companies, according to an announcement by the Chancellor of the Exchequer.
Who can you share your levy funds with?
The transfer facility, first introduced in April 2018, allows levy-paying employers to share their levy funds with businesses outside their company group structure. This includes smaller firms within your supply chain or apprenticeship training agencies. Initially funds could only be transferred to one employer, but this has since expanded to allow an unlimited number of receiving employers.
These changes form part of a package to support learning and fuel productivity. They provide an opportunity to expand the availability of apprenticeships.
Funding transfer rules
Naturally there are rules around the transfer of apprenticeship levy funds:
- Sending and receiving employers need to be registered on the apprenticeship service.
- If you want to transfer funds, you’ll need to agree the apprenticeships that are being funded by a transfer.
- Organisations receiving transferred funds can only use them to pay for training and assessment for apprenticeship standards (not apprenticeship frameworks).
Further guidance on transferring unused apprenticeship levy funds to other employers has been published by the Education and Skills Funding Agency and is updated regularly.
If you’d like to know more about the apprenticeship levy and ways it can be used to train your existing and new employees, contact us today.