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7 pointers to help employers prepare for transfers on the apprenticeship service

From May 2018 employers who pay the apprenticeship levy will be able to transfer apprenticeship service funds to other organisations to pay for their apprenticeship training and assessment

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. The number of employers that you will be able to transfer funds to will increase over time and after user feedback from the first phase.

So what do you need to think about now to prepare for transfers as a levy-paying employer?

1. Consider how much funding you will be able to transfer

You can transfer up to a maximum of 10% of your annual funds, which will be calculated from the total amount of levy declared during the previous tax year.

2. Consider the total costs of any apprenticeships you would like to support

As the sending employer you are responsible for managing the amount of funding that you transfer and for funding the whole cost of the apprenticeships you are supporting, up to the funding band maximum.

3. Find a receiving employer

This can be any employer. You might want to choose an employer in your supply chain or sector, or perhaps you would like to support your local economy. It is your choice as long as the funding is being spent on apprenticeships.

4. Have detailed conversations with your receiving employer

Discuss the number and type of apprenticeship standards that you could fund with a transfer and the total cost. 

5. Read the funding rules

6. Review and sign the new employer agreement

The employer agreement in the apprenticeship service will be updated to include transfers. Any employer that wants to send or receive a transfer needs to digitally sign the new employer agreement.

7. Agree the details in advance with the receiving employer before starting to set up the transfer on the apprenticeship service

To send and receive a transfer, both employers will need to have an apprenticeship service account. 

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