Apprenticeship Levy Transfer -Update 2020

Here  at Sporting Futures Training we continue to urge schools to think about how they can spend their levy, through either employing new recruits  and maximising financial opportunities with current wage incentives or upskilling existing staff.

Sporting Futures Training is committed to offering up to the minute, clear information for all schools relating to how best use their Apprenticeship Levy on Apprenticeship Training.

We are Teachers and understand the current challenging financial climate in schools.

Please contact us and we will offer guidance and support on the use of the Levy and we can also support larger organisations with regards to using unspent Levy on Levy Transfer.

Tel: 01438 791068

Email: [email protected]

What is the Apprenticeship Levy?

 

All UK employers who have a total employee pay bill above £3m a year will pay the Levy. 

Employers get a £15,000 fixed annual allowance to offset against the Levy payment. Employers who operate multiple payrolls will only be able to claim one allowance for the Levy. For example, if you have a £3m pay bill, you would have a Levy bill of £15,000 (at 0.5% of employer pay bill).

Local Authority Schools with a wage bill of less than £3m will pay a contribution towards the Levy to the Local Authority.

How will the Levy be collected?

Payments will be collected monthly by HM Revenue and Customs (HMRC) through Pay As You Earn (PAYE), alongside tax and National Insurance.

What happens to the money once it has been paid?

The money will be collected by HMRC and for apprenticeship training in England will be accessed via a new Digital Apprenticeship Service (DAS) account.

You will be able to use this to pay for apprentice training. On your DAS account you will be able to see training providers that you want to deliver the training, choose appropriate apprenticeship training courses and find candidates for your programmes.

You can register for the Digital Apprenticeship Service now: https://www.gov.uk/government/news/registration-open-for-online-apprenticeshipservice

Funds can only be used towards the costs of apprenticeship training. They cannot be used on other associated costs such as apprentice wages, travel and subsidiary costs or the costs of setting up an apprenticeship programme

When an apprenticeship has started, monthly payments will be automatically taken from your digital account and sent to the training provider. This spreads the cost over the lifetime of the apprenticeship. You will see funds entering your digital account each month as you pay the Levy, and funds leaving the account regularly each month as you pay for training.

The government website on apprenticeship funding and the Levy has plenty of information and detailed documents to give further guidance:

https://www.gov.uk/government/publications/apprenticeship-levy-how-it-willwork/apprenticeship-levy-how-it-will-work