What can Levy funds be spent on?
Levy funds can only be used towards the cost of apprenticeship training and End-Point Assessment with an approved training provider. It can't be used towards an apprentice's wages or wider training programme.
How can my organisation spend them?
Levy funds collected by HMRC are found in your Digital Apprenticeship Service (DAS) account. Employers can direct the funds held in these accounts to approved training providers, like Kaplan, to pay for their apprenticeship training
Levy funds expire after 24 months, and return to the government, so it’s important to spend them on apprenticeship training sooner rather than later.
Additional apprenticeship incentives
The government operates a number of schemes to incentivise employers to hire young apprentices.
Employers and training providers could get £1,000 each for taking on an apprentice who is either aged 16 to 18 years old, or aged 19 to 25 years old and has an education, health and care (EHC) plan or has been in the care of their local authority.
For more information about incentive payments, visit the gov.uk website.
National Insurance
From 6 April 2016, employers may not need to pay Class 1 National Insurance contributions for an apprentice, if the apprentice:
- is under 25 years old
- is on an approved UK government apprenticeship standard or framework (these can differ depending on UK country)
earns less than £967 a week (£50,270 a year)
For more information about National Insurance contributions, visit the gov.uk website.