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The Apprenticeship Levy | Use it or lose it!

DID YOU KNOW that unspent levy money expires from your digital account if it’s not spent within 24 months? 

It’s true – so you need to make the most of yours, before it’s gone.

The Government introduced the Apprenticeship Levy in 2017 to help to reach their target of delivering 3 million apprenticeships by 2020. 

It sees businesses with a payroll of £3 million or more making monthly deposits (0.5 per cent of their annual pay bill) to HMRC through the PAYE process.

This money is then made available for them to spend on apprenticeship training and assessment over the next 24 months. However, it can’t be used for additional costs, such as travel expenses, statutory licenses and wages.

Funds expire on a ‘First In, First Out’ basis meaning, for example, that you’ll only lose funds in Feb 2020 if you’ve spent less than your Feb 2018 contribution in the past 24 months. 

What’s more, your expired contributions won’t go to waste. 

They’re transferred to support existing apprenticeships, levy-paying employers who spend more than their available funds, and to non-levy paying employers. Many SMEs fall into this category.

However, if you’re paying into the Levy it’s important to make sure you aren’t missing out. 

You should use your funds to fill skills shortages in your business, whether that’s through training up new talent or developing your existing staff.

We provide ongoing and high-quality guidance on the Apprenticeship Levy – including advice on how best to allocate funding to maximise both the personal development of the apprentice and the results output for the business. 

Contact Linda Stokes, Oldham College’s Employer Engagement and Recruitment Manager on 0161 785 5450 or email linda.stokes@oldham.ac.uk