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Apprenticeship Levy Transfer for Transferring Employers

For employers who pay the into the apprenticeship levy Pay Apprenticeship Levy – GOV.UK and have unspent funds there is the option of transferring up to 25% of the annual levy contribution to another employer. This transfer takes place through Apprenticeship Service, which also facilitates the transfer. These funds can be used to fund new apprenticeship starts in other organisations as well as upskilling current staff.

Things to consider:

• Do you have enough funds to transfer to another employer?

• Have a clear understanding of the forecasted cost to you, which will cover the duration of the apprenticeship you’ve agreed to fund through a transfer

• Understand you will be funding the total coat of their apprenticeship and not just the co-investment

• Agree with the employer who is receiving the transfer, details of the apprenticeships you are funding

• Are aware of the funding rules around transferring apprenticeship funds

How to start a transfer:

The sending employer and the receiving employer need to first agree the details of the transfer of funds; for example, which apprenticeship standard, how many apprentices, the cost.

Once both employers are registered on the apprenticeship service the following must be done in their accounts to complete a transfer:

• Connect with each other

• Receiving employer to add the apprentice details

• Confirm the transfer

Apprenticeship Levy Transfer for Receiving Employers

If you are funding your apprentice/s through transfer of funds, as the receiving employer, you will need to set up an account on the government’s Digital Apprenticeship Service (AS) if you do not already have one.

You will need to enter details of the apprenticeship that the transferred funds relate to. 

If you already have an apprenticeship service account, you may use this to receive a transfer.

Before entering the details on your apprenticeship service account, you must:

• agree with the sending employer and the main provider which apprenticeship standard your apprentice will be undertaking

• confirm the price that you have negotiated with your main provider. All parties will need to approve these details through the apprenticeship service

Levy transfers - how it works

 The flowchart above shows the process of how the funds are transferred and more detailed guidance can be found at GOV.UK.
• Videos demonstrating how to set up your account and use the service can be found here

Setting up you Apprenticeship Account 

To receive funding for your apprentices, you will need to create an account on the Apprenticeship Service Create an apprenticeship service account. This will allow you to receive funding for co-funded apprenticeships as well as levy funded apprenticeships. Co-funded apprenticeships are 95% funded by the government and 5% funded by you if:

• The apprentice is aged 19 or over

• Aged 16 plus and you have 50+ employees 

• You are not receiving funding through transfer of apprenticeship levy from a large organisation. 

Your training provider will be able to support you to complete this. 

Helpline for Apprenticeship Service:  Apprenticeship Service Support

Six Steps to receiving a levy transfer:

1. Receiving employer agrees terms (standard, cost and duration) with the transferring employer

2. Receiving employer sets up an Apprenticeship Service account

3. Transferring employer connects its Apprenticeship Service account to the receiving employer

4. Receiving employer selects the training provider to deliver apprenticeship

5. Transferring employer gives final approval online

6. The apprenticeship starts and monthly payments are made to the chosen training provider


Apprenticeship Services Changes 

The government is improving the service offered for apprenticeship levy share and introducing a public platform to allow levy paying employers to pledge unspent levy funds (up to their 25% transfer allowance) to support apprenticeships in other businesses.

All businesses will be able to see these pledges on the public website and apply for funding to pay 100% of their apprenticeship training and assessment costs up to the funding band maximum. 

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