What is a Non-levy Payer?

In this post, we have explained apprenticeship funding answering commonly asked questions around ‘What is a non-levy payer?’.

Non-levy employers do not have to pay into the Apprenticeship Levy and instead 95% of the apprenticeship training costs will be funded for you by the government - in some circumstances, it may even be fully funded.
Our team at White Horse Training can provide step-by-step support to access this funding.

What is a non-levy payer?

If you are a business with an annual payroll of under £3 million then you will not be paying into a ‘levy-pot’ and are therefore a non-levy payer.

As an employer who doesn’t pay the Apprenticeship Levy, you pay just 5% towards the cost of training an apprentice. The government will pay the remaining 95% up to the funding cap for your chosen programme.

If you employ fewer than 50 employees, the government will pay 100% of the apprenticeship training costs for apprentices aged:

  • 16 - 18
  • 19 - 24 with an education, health and care plan or who has been in the care of their local authority.

Government financial support means for many businesses recruiting and training an apprentice is more cost-effective than hiring skilled staff on a higher salary.

Government Funding, Non-levy employers

How do you access government funding?

To access and use the government apprenticeship funding you will need to create an apprenticeships service account.
This is a government online service that allows employers to set up and manage apprenticeships and here you can reserve apprenticeship funding.

White Horse Training will guide and support you through the funding process, with step-by-step instructions on how to set up your account.

As the employer, you will then only need to pay the remaining 5% of the training costs which you pay to the training provider directly.

For more information on the apprenticeship service, you can visit apprenticeships.gov website.

Incentive payments for hiring a new apprentice

Employers could get £1000 for taking on an apprentice who is either:
- Employers can receive a £1000 incentive payment for hiring an apprentice who is:

  • Aged 16 to 18 years old

The payment can be spent on any costs associated with supporting an apprentice in the workplace. For example, on uniforms, their travel or their salary.

Employers do not need to take any action to gain this payment. As the training provider, we will pay you the first payment of £500 after 90 days of the apprenticeship training start date. The final payment of £500 will then be paid after 365 days of the apprenticeship training start date.

Can I use the apprenticeship funding for existing staff?

Apprentices do not have to be new employees, you can upskill your current workforce through an apprenticeship with government funding.

Employee training is important for staff retention, motivation and job satisfaction. Training existing employees through an apprenticeship will lead to them attaining industry-recognised qualifications, providing valuable skills to your business.

How would it work?

Using government funding to train existing staff works just like any other apprenticeship. Once enrolled a member of staff would spend 80% of their time working as usual, but 20% of their time would be spent as ‘off the-job-training’ while they learn, study or get hands-on with different activities.

At White Horse Training we take care of every aspect of accountancy apprenticeships, delivering for levy-paying and non-levy paying employers in both industry and practice.

We will guide you through the funding process and minimise disruption for you by providing comprehensive support for you and your learner throughout every stage of the AAT Apprenticeship programme.

Call our team for further information about selecting White Horse as your Training Provider.

Accountancy apprenticeship programmes where you - and your apprentice - are supported every step of the way.

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