Learn how you can support businesses in your sector/region by gifting your Levy…
Are you missing out on apprenticeship Levy funds? As of April 2019, Levy paying employers can now gift up to 25% of their overall levy to other employers who are paying for Apprenticeships under the co-investment model.
Levy payers can support other organisations by transferring a percentage of their funds to other employers, including smaller employers in the supply chain. The change in percentage set by the government has been introduced to help support and grow the number of in apprenticeships.
The funds can only be used to pay for training and assessment for apprenticeship standards. However, the funds cannot be used for training and assessment frameworks.
Can I share my levy with charities or partner organisations?
Employers can also gift their levy to charities they support or partner organisations, to help support apprenticeship training costs (Non-Levy employers or employers who have spent their Levy pay 5% of the overall cost of an apprenticeship).
However, it is important to take into account ‘state aid rules’ when considering this option. State aid is a percentage of all funds received as a transfer, and represents the amount of co-investment you would have had to otherwise contribute towards the Levy, had the transfer not taken place.
For all starts funded through a transfer before 1 April 2019, a total 10% of all funds may be considered as state aid. For starts funded through a transfer on or after 1 April 2019, only 5% may count. This is because the co-investment rate is reducing from 10% to 5% for all new starts from 1 April 2019.
Employers should be aware before accepting transfer, as they must check how much state aid they’ve already received in any three year period. Due to the transfer limit, they’re allowed under the ‘de minimis’ funding rules. The limit an organisation is allowed to receive as state aid is €200,000 in any rolling 3 year period.
If you are unsure how the state aid implications may affect you contact Solvo Vir to speak with one of our specialists.
Benefits of sharing your Levy funds with other businesses to train apprentices
- Supporting local businesses
- Stimulate economic growth
- Help your sector to grow and improve
- Support charities and social enterprises
- Bolster your corporate social responsibility agenda
- Establish local networks in your business community
- Create opportunities for young people in your region
- Raising your organisation profile (good PR opportunity)
How Solvo Vir Can Help
Utilising the full potential of your Apprenticeship Levy would allow you, as an employer, to focus on the skill-gaps within your team. This would, in turn, mean a more professional and equipped workforce, confident in everything they do. You can also use your Levy to introduce new talent into the business, creating new roles in departments where there may be gaps or support required.
If you would like to learn more about how the new levy transfer market works, or are looking to gift your transfer levy and would like some assistance, contact Solvo Vir on 0330 0539140 or alternatively email us at email@example.com.