Apprenticeships funded by transfers of levy funds
Sending and receiving apprenticeship levy funds.
Introduction for main providers
P249
Levy-paying employers can transfer a percentage of their levy funds, which were declared for the previous tax year, to other employers, including apprenticeship training agencies (ATAs) and Flexi-Job Apprenticeship Agencies (FJAAs). The transfer allowance percentage is currently set at 25%.
- P249.1 The transfer allowance will be calculated from the total amount of levy declared during the previous tax year, with the English percentage applied, plus the 10% government top-up payment. This allowance is recalculated every tax year and any unused allowance will not be carried forward.
P250
Employers receiving transferred funds will only be able to use them to pay for training and assessment for apprenticeship standards for new apprenticeship starts. A transfer must be agreed and put in place before an apprentice (being funded by the transfer) starts their apprenticeship. The only exception to this is where the apprentice is changing employer and an agreement to continue their apprenticeship with their new employer is via a transfer of levy funds – this must be agreed by the point the apprentice starts with their new employer.
P251
Where receiving employers fund apprenticeships with transferred funds they are treated as levy-paying employers.