Apprenticeship Levy – Use it or Lose it!
Since April 2017, employers with a pay bill of £3 million and over have been required to contribute 0.5% into their apprenticeship levy fund. Two years on, the uptake and spending of these funds has been far lower than expected, so much so that the Government is reducing the co-investment cost for small employers.
As the apprenticeship levy funds paid into your account expire on a rolling 24-month basis, if you are yet to spend your contributions from April 2017, you may lose out.
If you pay into the apprenticeship levy but don’t have the ability to fully use your own levy fund, from April 2019, you’ll be able to share up to 25% of your apprenticeship levy with another employer. This could be useful if your business is part of a group or a close supply chain, in which the other businesses within the chain have the opportunity to take on an apprentice.
For example, a shop that is part of a supply chain with a particular factory or manufacturer could opt to share their apprenticeship levy with the other business to help them with their apprenticeship funding.
If you haven’t yet used your apprenticeship levy funds or want to share your funds with another employer, you can do so through your digital ‘manage apprenticeships’ account.
This article originally appeared on the blog of our member firm, Larking Gowen.