Levy Paying Employers

For larger Levy paying companies, you’ve already paid for training due to the Government tax. You can also still benefit from the £1,000 Government training incentive for employing a 'young' person.
Levy payments can be used to fund apprenticeships right across your organisation, not just for new employees. Levy funds remain in your apprenticeship service account for a maximum of 24 months, so you could start to lose funding that could be used to up-skill your new and existing employees.

There is no upper age limit for becoming an apprentice. Recent statistics show 71% of apprenticeships were started by those aged 19 or over; in the over 25s, the average age was 37 years. Source: UK Parliament Apprenticeship Statistics: England
It doesn’t have to be complex. It’s your levy, and our aim is to help you make the most of it. Here are a few simple steps you can take to use it and not lose it.

Step 1

As the employer, identify which employees will benefit and be offered the opportunity to undertake an apprenticeship. Your levy payments can be used to fund apprenticeships for new or existing employees.

Step 2

Contact us and we can then identify and advise the most beneficial learning pathway for both your business and the learner(s).

Step 3

Employer and learner to confirm that they would like to proceed with the apprenticeship. Once the enrolment is complete, the learning will begin!
Your Questions Answered
What is the apprenticeship levy?

The apprenticeship levy is a UK tax on employers which can be used to fund apprenticeship training. All employers with an annual pay bill of more than £3 million each year, must pay the apprenticeship levy from 6 April 2017.

Who has to pay it?

If you’re an employer with a pay bill over £3 million each year, you must pay the apprenticeship levy from 6 April 2017.

Non-levy paying employers will share the cost of training and assessing their apprentices with the Government - this is called ‘co-investment’. This only applies to apprentices over the age of 22. 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.
As of April 2024, the government will fully fund the training for apprentices under 22 years of age.

How do I utilise my levy funds?

1) Contact Rewards Training to discuss your apprenticeship requirements.
- We can then identify and advise the most beneficial learning pathway for both your business and the learner(s).

2) Agree a price and payment schedule with us, which includes the costs of training and assessment.

3) Pay for training and assessment with funds through your apprenticeship service account.
- Once the apprenticeship training you’ve bought has started, monthly payments will be taken from your service account and sent to us. You will see funds entering your account each month after you have declared the levy to HMRC, and funds leaving the account each month as you pay for training.

If you don’t have enough funds in your account to pay for training in a particular month, the remaining cost of training and assessing your apprentices for that month will be shared with the Government. This is called ‘co-investment’. With ‘co-investment’, you will pay 5% of the outstanding balance for that month, and the Government will pay the remaining 95% up to the funding band maximum. If the costs of training and assessment go over the funding band maximum, you will need to pay the difference with other funds from your own budget.

Expiring levy payments

Funds you don't use will expire 24 months after they enter your account. For example, funds entering your account in September 2023 will expire in September 2025. They’ll be used on a ‘first in, first out’ basis, so the sooner you become engaged with apprenticeships the better.

To find out more about the levy

The regulations around the levy and apprenticeship funding are complex. Rewards Training can support you with managing your levy through your apprenticeship service account. We will help you to maximise the benefits you can recoup from your levy payments.

Contact us to find out how we can help your business utilise its unspent levy pot! Call us on 01293 224 225.