Busec Nova CIPD qualifications – Levy and non-Levy funded
The Levy is a UK tax for employers with an annual wage bill in excess of £3 million, paid by a process that sits alongside payment of income tax and national insurance contributions. Employer’s levy funds are held in a Digital Apprenticeship Service (DAS) account and are available to spend on Apprenticeship Training for 24 months from the date of payment. All funds that are not spent after this period will expire and are reclaimed by HMRC.
The Apprenticeship Levy can be used for any of your employees no matter what age as long they meet the requirements of the Skills Funding Agency (SFA)
In cases where an employer spends all available Levy funds for the year, the option to achieve further funded training is required to contribute 5% towards the qualification the employee is going to enrol for.
Sharing Levy funds between different companies
This is possible to a maximum of 25% of the employer contribution, which can be shared between other Levy paying companies. It can be distributed between as many companies as you like.
Non-Levy funding is available for any employers who have a wage bill less than £3 million. In such circumstance, the employer only pays a 5% Contribution towards a qualification; the remaining 95% is funded by the government.