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That only applies if the employer was paying the 5%. It's always just a refund to the employer, there's nobody else to refund.
Total price x 0.8 = On Programme Payments (OPP)
OPP/planned months (pay attention to end dates on the last day of the month as you count those) = Monthly income
Monthly income x months actually completed = income earned for this apprenticeship
Income Earned / 20 = The 5% the employer owes
Any payments already made by the employer - The 5% the employer owes = Refund
You then have to record that as a PMR 3.
So if the price was £10k, planned duration was 20 months, the actual duration was 10 months, and the employer had only paid £300 so far:
10,000 x 0.8 = 8,000 (OPP)
8,000 OPP / 20 = £400 (monthly income)
400 x 10 months = £4,000 (income earned for this apprenticeship )
4,000 / 20 = £200 (amount now required from employer)
£300 already paid - £200 = £100 refund
If the employer hadn't yet paid anything, they would still owe you £200.
It's rarely nice round numbers. Always round down the refund to the nearest pound, or the co-investment percentage you collected will be below 100%. If they still owe you money, round that up to the nearest pound for the same reason. One of my administrators built a spreadsheet for this where you enter the prices and dates and how much was paid already (or not), so we never actually do this manually (it does the rounding too). I made all my team do these calculations by hand until they understood before I let them use the easy option 😂
Do cross check everything on the monthly Apps Co-Investment Report to make sure all your withdrawals are sitting at 100% (or slightly above due to rounding). You can just use that report, but you then have to wait until it's available.
Total price is TNP1 + TNP2. TNP1 might sometimes be 80% of the total, but it shouldn't always be. The EPAOs often charge less than 20% of band max for the EPA, and TNP2 is the amount you're going to pay the EPAO.
The split between Training and Assessment is not the same thing as the split as between on programme payments and completion payment.
Ruth Canham-James How do you deal with rounding on a month-to-month basis? For example with levy payers that need to co-invest 20.5782 according to the report?
Jessica De Melo For levy payers in insufficient funds, we check the co-investment report quarterly, and invoice for that quarter, rounding up to the nearest pound. The next quarter they owe us, assuming they paid last quarter, there will be a new value that they owe, that takes into account the 42p overpayment. So they might owe us £33.12 for the last three specific months, but they overpaid 42p the quarter before, so the overall amount outstanding is just £32.70, so we'd invoice £33 for this quarter, even though the quarterly owed amount was £33.12. So we round up the cumulative amount owed, we don't always round up each monthly/quarterly required amount.
Hi Ruth, sorry to be a pain but can you clarify the below in the example:
So if the price was £10k, planned duration was 20 months, the actual duration was 10 months, and the employer had only paid £300 so far
Is this what the employer has paid so far in current year only 23/24 or is it also looking at what they have paid in previous years (if any)
Chris Ashfield Paid in any year. It's rarely relevant what year they paid in, it cumulative. All your payments in any year should be being reported in the current year.
Chris Ashfield
Apprenticeship Withdrawal refunds
Created
Hi all, im hoping someone can offer some clarity on the below from the funding rules:
Where applicable, employer co-investment should be reconciled to the date of withdrawal. Any employer payments for training and/or assessment that has not been delivered by the withdrawal date should be repaid to the employer.
Does anyone know how this would be calculated? Is there a report we should be using? If they havent reached EPA does this mean the fees need to be refunded to the Employer (TNP2)?