How to gift your unused Apprenticeship Levy to other organisations

Employers who pay the apprenticeship levy can choose to transfer up to 25% of their levy funds each year to other businesses. Transferring levy funds is a way to support other organisations and sectors by funding the skills training they need.

Organisations with annual payrolls over £3 million have to pay the apprenticeship levy to fund apprenticeship training and development. Levy funds expire after two years if unspent, so transfers help put funds to good use.

A levy transfer allows employers to transfer up to 25% of their unused levy funds to another business to help pay for their apprentice's training costs. The transfer helps maximise the use of levy funds.

Levy transfer eligibility and usage

Employers can transfer up to 25% of their previous year's levy funds, including the 10% government top-up, to any business with an apprenticeship service account. This includes levy payers and non-payers.

Funds only cover new apprenticeship starts and their full training/assessment costs, up to funding maximums. The only exception is when an apprentice changes employers. Since February 2022, sending employers may also receive transferred funds.

How to gift your levy for apprenticeships?

A gift, also known as a levy transfer, allows employers to transfer up to 25% of unused levy funds to another organisation to help pay training costs. This maximises levy use. You cannot exceed this 25% limit per financial year.

There are two options for gifting unspent levy funds:

1. Pledge funds through the government's online service for charities and SMEs towards apprenticeship training if they meet your criteria.
2. Transfer funds directly through the Digital Apprenticeship Service to specific charity partners or SMEs you wish to support. This allows you to work directly with them rather than through an open application process.

By gifting funds, businesses can help smaller organisations upskill teams to operate more efficiently and prosper.

You then become responsible for paying training/assessment costs until completion. Other costs like wages are the receiving employer's responsibility.

How to make a levy transfer connection

Any business can receive transferred funds if they have an account. This includes levy payers and non-payers.

To transfer funds to a business, you need their apprenticeship service account ID. In your account, select "Finance" then "Manage transfer connections." Enter their ID, wait for acceptance, and then agree on apprenticeship training details and costs.

What is your commitment level to transferring funds?

When transferring levy funds, you commit to paying that apprenticeship's costs until completion, so transfers are multi-year commitments. Payments leave your account monthly, prioritised over your apprentices. Duration varies, and breaks in learning impact monthly payments.

You are not liable for other costs like wages, travel, or equipment - that is the receiving employer's responsibility.

Things to consider before transferring your

apprenticeship levy

Making an apprenticeship levy transfer involves various considerations around eligibility, usage, processes and support. Key aspects to think about are:

1. Consider if you have adequate levy funds for multi-year commitments
2. Transfers are monthly payments over varying apprenticeship durations
3. Delays or learning breaks affect the payment schedule
4. Fund any organisation with a service account, levy payers or non-payers
5. Funds apply to new starts and full training/assessment costs
6. Exception is transferring funds for an employee's continued apprenticeship
7. You pay only for training/assessment, the receiver handles employment responsibilities
8. Smaller businesses can access transfers if exceeding the government co-investment limit
9. Transfer methods: direct connections or pledging public funds for application

Brokers like Future Talent Learning can match funders to needing recipients. 

The social impact of transferring your apprenticeship levy to another company

Transferring unused levy funds allows more businesses to access apprenticeships, and sharing opportunities. It helps boost apprenticeship numbers across the UK, providing career opportunities. You can target funds to support industries, local areas, or causes aligned to your CSR.

Are you looking to start transferring your unused apprenticeship levy funds? Our team can help manage the process from start to finish. Get in touch today to learn more!