NON LEVY PAYER

WHAT IS THE APPRENTICESHIPS LEVY?

If you are a small employer (annual wage bill of less than £3 m), you can co-fund Apprenticeship training which is currently paying just 5% (with the rest paid for by the Government). This is managed through the Digital Apprenticeship Service (DAS) online account.

You can get help from the government to pay for apprenticeship training. 

Funding
Every individual Apprenticeship will be allocated to a funding band. The upper limit of the funding band will cap the maximum price that the government will ‘co-invest’ towards.  For example, if you hire a Business Admin Apprentice, the funding band is £5000.00, Based on this, you will pay only £250.00 towards the training. (5% contribution rate) 

Applying for the incentive payments
You can also apply for government intensive which has been made available as part of Covid-19 response.

Please follow the steps below to apply for incentive payments for hiring a new apprentice. 

1. HIRE NEW APPRENTICES BETWEEN 1 AUGUST 2020 AND 31 JANUARY 2021
Any organisation can apply for the payment, no matter the size or the sector. The important thing is that you hire an apprentice who
is new to your organisation starts their contract of employment and their apprenticeship with you between 1 August 2020 and 31 January 2021. 

You could get the payment when you hire an apprentice who has been made redundant, as long as they’re new to your organisation.

2. APPLY FOR THE INCENTIVE PAYMENT FROM 1 SEPTEMBER
You’ll be able to apply for the payment from 1 September 2020, after you’ve added new apprentices to your apprenticeship service account. You’ll need to give us your organisation’s bank details so we can pay you directly.
Your training provider will need to confirm the details you give to us so that we can make your payment.

3. GET PAID UP TO £2,000 FOR EACH NEW APPRENTICE
You’ll be eligible for 2 equal installments, after the apprentice completes 90 and 365 days of their apprenticeship. We’re expecting to make the first payments in January 2021.
You could get paid up to £2,000 for each new apprentice you hire. You can find out more about how much you’ll get paid and how you can spend it.

Additional payments
As a non-Levy-paying employer, who employs a young (16-18-year-old) person, the government will pay you an additional £1,000 over two equal payments after 3 months and 12 months. Initially, the payment for the employer would be made via us. Over time, they intend to move to a system where you receive this payment directly from the government.

Find out more

Contact us for more informations

ANY OTHER QUESTIONS?

Yes. If you are an SME with less than 50 employees, then the government meets the full cost for Apprentices aged 18 and under. For those aged over 19 they will pay for 95% of the cost, the rest has to be met by you.

The government also meets all of the costs for employing Apprentices aged 19-24 from a with additional learning needs.

SMEs are still subject to the same Apprenticeship funding bands as levy paying employers. From 2019 you will have to pay for the cost of training through the new Digital Apprenticeship Service (DAS) online account, where you can recruit up to ten apprentices. .

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