OPTION 1 LEVY
If you pay the apprenticeship levy, you’ll receive funds through the apprenticeship service to spend on training and assessing your apprentices. You can use your levy to pay for apprenticeship training and assessment up to the funding band maximum for that apprenticeship. 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.
Levy payers can support apprenticeships in other organisations by transferring a percentage of their apprenticeship funds to other employers. Levy paying employers can transfer 25% of the annual value of funds entering their apprenticeship service account. A levy transfer covers the total cost of the apprenticeship and not just the 5% co-investment. These funds can be transferred to any employer to support new opportunities and widen participation in apprenticeships.
OPTION 3 CO-INVESTMENT/RESERVINGFUNDS LEVY TRANSFER
If you are an employer who doesn’t pay the apprenticeship levy, you will need to either secure a levy transfer or you can reserve funding using your apprenticeship digital account. When you reserve funding, you pay 5% towards the cost of training and assessing your apprentice. The government will pay the rest (95%) up to the funding band maximum. You pay the 5% co-investment directly to the training provider.