If an employer who pays the apprenticeship levy does not plan to use all of the funds in their apprenticeship service account, they can now make a transfer to another employer to support them in taking on apprentices.
Transfers is the first big flexibility HMRC is offering to employers to help make apprenticeships work better for everyone, enabling larger employers to support other employers, for instance in their supply chain, sector or local area.
For the first phase, employers who have unused funds in their apprenticeship account will be able to transfer some of those funds to one other employer and that employer does not have to be a levy paying employer. The restriction to one transfer is temporary to enable testing of the new functionality. After user feedback from the first phase, the number of employers that one employer can transfer funds to will increase, over time.
The Education and Skills Funding Agency (ESFA) blog has published a useful 7 point list to help employers prepare for transfers on the apprenticeship service:
1. Look at your transfer allowance 2. Consider the total costs of any apprenticeships you would like to support 3. Find a receiving employer 4. Have detailed conversations with your receiving employer 5. Read the funding rules 6. Review and sign the new employer agreement 7. Agree the details and set up the transfer on the apprenticeship service
Read the full blog to see the details to consider under each of the 7 points.
Further information Is your organisation using the apprenticeship levy to its full potential for training your workforce? Watch these short videos to understand how to use the apprenticeship service.
You can keep up to date by following @ESFAdigital on Twitter and reading the ESFA blog.
If you have any queries about the apprenticeship service, you can call 08000 150 600 or email helpdesk@manage- apprenticeships.service.gov.uk.
Back to Contents
Allocating your Apprenticeship Levy allowance 8 August 2018
Guidance on how to allocate your apprenticeship levy allowance has been updated.
How to allocate your allowance Your Apprenticeship Levy allowance of £15,000 can be allocated between: • all your PAYE schemes • your connected companies or charities
You can decide how to split the allowance between your PAYE schemes or with your connected companies or charities. You’ll need to report how you’ve allocated your allowance the first time you have to pay Apprenticeship Levy.
You cannot change your share of the allowance during the tax year.
You must continue to apply the levy allowance that was allocated at the beginning of the tax year if, part way through the year: • you become a connected employer (such as by merging with or acquiring another company) • the structure of your group of connected companies or connected charities changes (such as by demerging with another company)
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 19 of 598
Made with FlippingBook - Online magazine maker