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It has recently been announced that as of the end of July the temporary restriction on how many employers a levy-payer can transfer apprenticeship service funds to will be lifted. This will allow levy-paying employers to transfer up to a maximum of 10% of their apprenticeship service annual funds to employers of their choosing.

The allowance is 10% of your business annual funds, which will be calculated from the total amount of levy declared during the previous tax year.

  • The total apprenticeship levy declared to HMRC by Employer A in the 2017 to 2018 tax year was £500,000
  • 90% of their wage bill goes to employees living in England so their ‘English percentage’ is 90%
  • £500,000 x 90% = £450,000
  • Add 10% government top-up. 10% of £450,000 = £45,000, so total is £495,000
  • Employer A’s transfers allowance for 2018 to 2019 is 10% of the above total, so £49,500

This money can then be sent to an employer of your choosing. You might want to choose an employer in your supply chain or sector, or perhaps you would like to support your local economy. It is your choice as long as the funding is being spent on apprenticeships.

The receiving employer can be a levy-paying employer as long as they are not sending a transfer. If you are sending a transfer you cannot also be in receipt of a transfer.

For more information regarding the transferring of funds please click here