What Happens When My Levy Moneys Runs Out?
When it comes to the levy, so much has been published that it can be overwhelming. This can make it hard to relevant answers to the questions we are asking. As a training provider we answer a lot of questions on the levy, be it our current employers, prospective employers or those just curious or concerned.We’re in a fantastic position to inform and educate all that we speak to about this sometimes baffling subject, and put people’s minds at ease. So we want to take the opportunity to answer some of the most commonly asked questions around the apprenticeship levy.
As we are all aware by now, only businesses with a pay bill with over £3mill will pay into the levy, and how much they pay into it, equals how much they have to fund apprenticeships. Simple? You would think so wouldn’t you?
Here’s An Example:
If your business has an annual pay bill of £4,000,000 you will pay 0.5% of anything over £3million. 0.5% of £1,000,000 is £5000.
So What’s Happens If You Don’t Have Enough In Your Levy Pot And It Runs Out? What Do You Do?
This is called co-investment, and this occurs when a levy payer simply runs out of money in their digital account. The employer will then be able to use the model that applies to non-levy payers, meaning the employer will have to pay 10% of the remaining training costs to the training provider while the government will then pay the remaining 90%.
If you have any questions you would like us to answer that aren’t already on our FAQ page, send them in via our enquiry form and we will do our best to answer them for you! Written by:Amanda McCombie