Laura Howard

Employer non levy now levy

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Afternoon all, 

if an employer has hit the threshold of now being a levy payer (April22) but has not paid enough in to cover a 2 yr apprenticeship am I correct in assuming they will have to contribute as co investment and cover the shortfall?

Thanks Laura

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Steve Hewitt

Yes, I don't think an employer *becoming* a levy payer affects the learners already on-programme, only new ones, so, yes, they need to pay all of their 5% (cash) for a learner halfway through.

Laura Howard

Hi Steven, this would be a new apprenticeship. Employer has just confirmed that they have only just hit the criteria for levy - July 22.

Where do they stand with a new apprentice?

Thank you

Laura

Steve Hewitt

Oh, sorry, my misreading.

Yes, when a levy-payer runs out of credit in their account, the Co-Investment Contributions report tells you and then you invoice them for the amount. Is *usually* retrospective for levy payers.

BUT! they don't have to have it all there at the start, just sufficient to cover the monthly payments (because their account will "fill up" each month).

(Edited)

Laura Howard

And if they don't pay enough in the cover the monthly payments then they are liable for the shortfall and need to contribute?

Steve Hewitt

Exactly :)