About the levy transfer
All employers with a wage bill of £3 million-plus pay the equivalent of 0.5% of the wage bill into the Apprenticeship Levy
The Apprenticeship Levy can only be used to pay for apprenticeship training
Not all employers use all the apprenticeship levy they pay and the surplus is either transferred to another employer or returned to general taxation
Employers that pay the Apprenticeship Levy can choose to transfer unused levy to another employer
Levy Transfer is a way of making sure the Apprenticeship Levy stays in Lancashire
Transferring your apprenticeship levy to another business – GOV.UK (www.gov.uk)
FAQs
Yes. All employers can draw on the Apprenticeship Levy to pay for apprenticeship training, either by accessing funding directly as a Levy Payer or by requesting funding from another employer or from the Education and Skills Funding Agency (ESFA).
Any credits not used by the employer or transferred to another eligible employer will be retained by HMRC and diverted to general taxation.
No. Apprenticeship credits can only be used to pay for the cost of apprenticeship training courses.
The credits that accumulate in the employer’s apprenticeship levy fund can be used to pay for apprenticeship training.
The Apprenticeship Levy is paid by all employers that have a wage bill of £3 million or more. The levy is collected by HMRC and made available to the employer as a credit to pay for apprenticeship training. Not all employers use the credits and up to 25% of the credits can be transferred to other companies that do not have funding or have fully used their levy funds.
The Lancashire Levy Transfer Network (LLTN) was established in Autumn 2020 as an impartial and free service that matches businesses wanting to transfer unused Apprenticeship Levy funds to businesses seeking funding to support the training costs for their apprentices. The LLTN has contracted Lancashire Work Based Learning Executive Forum to manage the matching service in Lancashire. It can also advise on the process of setting-up and transferring funds via the Digital Apprenticeship Service.
In addition, the service also offers impartial support on:
- Choosing the right apprenticeship standard to meet the role and individual(s) development needs
- Deciding on which provider to deliver high quality training for your apprentice(s)
- Support on accessing current government incentives for recruiting an apprentice
- Information on employer commitments to be able to access apprenticeship funding such as contracted hours, off the job training, minimum wage requirements and more
- Accessing other apprenticeship and work-based related skills programmes (subject to eligibility criteria)