Guidance for Employers: When an Apprentice Changes Employer

1. What is the Apprenticeship Levy?

It’s a UK government initiative requiring large employers to contribute towards apprenticeship training. The funds are used to boost skills development across the workforce.

2. Who is required to pay the levy?

Employers with an annual pay bill over £3 million must pay 0.5% of their total payroll. An annual allowance of £15,000 is applied to reduce their levy liability.

3. How are levy payments collected and managed?

The levy is collected monthly through PAYE and held in a digital Apprenticeship Service account. These funds can be used to pay for apprenticeship training and assessment.

4. What happens if I don’t use my levy funds?

Funds expire after 24 months if not used and are returned to HM Treasury.

5. Can levy funds be used for recruitment or salaries?

No. They can only be used for approved training and end-point assessment costs. Employers must cover salaries and recruitment separately.

6. Can I use levy funds to train existing staff?

Yes. Apprenticeships are open to new and existing employees of all ages and experience levels.

7. Can I transfer my levy funds to another organisation?

Yes, up to 25% of your levy funds can be transferred to other employers, such as partners or supply chain organisations.

1. What if my organisation doesn’t pay the levy?

You can still access apprenticeship funding. You’ll typically contribute 5% of the training cost, and the government will cover the other 95%.

2. What happens if I don’t reserve funding in time?

You won’t be able to access the government’s co-investment. This may delay the apprentice’s start or require resubmission of the cohort.

3. What if I run out of levy funds mid-programme?

You move to co-investment — paying 5% of any remaining training costs, with 95% covered by the government.

1. Can a training provider invite me to set up an Apprenticeship Service account?

Yes. If you haven’t yet registered, your training provider can send you an invitation to create an account. This helps ensure you're correctly linked and ready to manage apprenticeship funding.

What information does my provider need to generate the invitation?

To send the invitation, your training provider will ask for the following:

• Employer PAYE reference
• Accounts Office reference
• First and last name of your primary contact at the organisation

Once they’ve submitted these details, you’ll receive an email invitation with a link to the GOV.UK registration page. Following the steps in that email will guide you through account setup and get you connected to the provider.

Alternatively, you can register independently by visiting the Apprenticeship Service registration page. This is a manual process and does not include the automation provided through a training provider’s invitation. You'll need to link your PAYE scheme during registration before you can begin managing apprenticeships directly.

2. Can I give my provider access to manage tasks?

Yes, with the right permissions, providers can:

• Set up records
• Reserve funding
• Submit details for approval - you still need to approve records directly via your account.

3. How can I make sure my organisation doesn’t lose access?

Give access to multiple users to prevent issues if staff leave or change roles.

1. When will I receive an approval request?

Once records are ready and required data is available (programme dates, skills assessments), the University will send a request near the programme start.

2. Why is approval timing so close to the start date?

• Non-levy funding can only be reserved up to 3 months in advance
• Accurate start/end dates are needed
• Prior learning must be assessed for pricing

3. What is the 'total agreed apprenticeship price'?

It’s the full government-funded training cost — not the employer’s direct payment. Levy and non-levy contributions are handled through the Apprenticeship Service.

4. How do I avoid missing approval requests?

Enable email notifications under Settings in your Apprenticeship Service account. The alerts go to the email linked to your GOV.UK One Login.

1. When will I be invoiced?

• February: for training delivered between August–January
• August: for training delivered between February–July

Invoices are based on our monthly government submissions (data funding returns) and are linked to your Apprenticeship Service account.

2. What do I need in place before invoicing begins?

• A signed Apprenticeship Agreement
• A signed Commitment Statement
• A contract between training Provider and Employer (issued via Adobe Sign)

These must be completed before any invoicing can occur.

3. Will I get an invoice if I’m a levy-paying employer?

Only if:

• Your levy funds are depleted, or
• Training costs fall outside levy rules

4. What co-investment rate applies to me as a non-levy employer?

• 5% for starts on or after 1 August 2019
• 10% for starts before this date

5. What are the payment terms?

Standard terms are 30 days from invoice date, unless otherwise agreed in your contract.

6. Where will invoices be sent?

To the Finance Contact listed on your original employer application.

7. Who can I speak to about an invoice?

• For payment queries, check your invoice or refer to our Finance Contact page
• For invoice value queries, email: VC Apprenticeship Data and Finance Support

1. What is the £1,000 apprenticeship incentive?

A government payment for employers hiring:

• Apprentices aged 16–18
• Apprentices aged 19–24 with an EHC plan or local authority care experience

2. Who is eligible to receive the incentive?

Both levy and non-levy employers — if the apprentice meets the criteria at the start of their programme.

3. When is the incentive paid?

• £500 at 90 days
• £500 at 365 days

The apprentice must still be employed at each milestone.

4. How is the incentive claimed and paid?

• Your provider submits the claim via the Apprenticeship Service
• They receive the funds and must transfer them to you within 30 working days
• Payment depends on having valid bank details on file

5. What can the incentive be used for?

There are no strict rules. Suggested uses include:

• Salaries or wages
• Travel costs
• Uniforms or materials
• Mentoring or additional support

6. Can I get the incentive for multiple apprentices?

Yes — you’ll receive £1,000 for each eligible apprentice.

7. Is this payment taxable?

Yes, it may be considered income and subject to audit, depending on your financial reporting responsibilities.

8. What if I don’t receive my incentive payment?

Speak to your training provider first. If unresolved, contact the Apprenticeship Service Helpdesk.