If you are assessing the suitability of apprenticeships programmes for your business or organisation, the following FAQs should be useful.
Click on a question for further information and then get in touch with us to arrange an appointment to discuss your specific requirements and thinking.
If your business has annual payroll of over £3 million your will incur a 0.5% levy charge. There is a £15,000 allowance tax free allowance e.g. A company with an annual £4m payroll will pay 0.5% levy on £985,000 which is £4925.
For levy payers, the amount held in DAS is the amount you will have accumulated through the levy and can use towards funding apprenticeship training and assessing the apprentices in your business. Should you not have enough to fund the cost of the apprenticeship there is a 5% company contribution.
The levy is paid through PAYE and is held in The Digital Apprenticeship Service (DAS) Account for 24 months.
You can access your levy pot through the online apprenticeship service. The funds in their accounts are available to spend on apprenticeship training in England.
No. Employers with a total annual pay bill of less than £3million – pay just 5% of the cost of their apprenticeship training programme and the Government pays the rest. There are also additional grants available and additional funding is available for certain types of apprentice e.g. Under 18
Yes, and if you don’t spend your pot within 24 months the funds will expire and be put into a wider pot and the UK Government will use these funds to help smaller employers to pay for apprenticeship training programmes and to support existing apprentices to complete their training.
Levy paying employers can transfer up to 25% of their Levy funds to other employers to help them with their apprenticeship training programmes. You can set stipulations on subject areas and levels e.g. you could help smaller suppliers in your supply chain to fund their people development programmes – knowing that the benefits of their improvement will ultimately benefit you.
You can find out more here: Search funding opportunities via levy transfer
Although employers fund expires after 24 months in the DAS, new funds will be entering your DAS every month for as long as you pay the levy, so you will be able to meet the full costs of apprenticeship programme that last longer than 24 months.
For instance, learners who take a break, or go on an extended period of leave during the programme, can pick up when they come back.
Funds from your pot can be used to pay for the apprenticeship programme until the learner completes the apprenticeship.
The costs of an apprenticeship are spread over the full length of the apprenticeship and are met in monthly instalments e.g. Level 3 Team leader, annual cost £4,500, monthly cost £187.50.
The cost of the apprenticeship is in two parts: the training programme itself (£3,750) and end-point assessment (£750). End point assessments are carried out by an independent organisation.
The training provided will draw down the monthly cost of the apprenticeship from the DAS on behalf of the empolyer. The training provider will also arrange for the end-point assessment fee to the independent organization, again this cost will be drawn down from the employers DAS.
The Government always uses the oldest funds in an account first to minimise the potential for funds to expire in the 24 month period.
If you do not have enough funds in your DAS to cover the monthly cost, the UK Government will pay 90% of the balance due to your training provider and you will pay the remaining 10%.
Designed for senior managers who are responsible for setting, managing and monitoring achievement of core objectives aligned to the organisation’s strategy, influencing at a high level and setting the culture and tone across their area of responsibility.
For those who work in busy business and functional roles and are responsible for overseeing and managing operational, procedural and administration tasks covering a range of crucial business and finance functions.
If you would like to discuss any of the above courses, or require further information, please contact us at info@academylm.co.uk or call us on 0845 890 2549.
