What is the Apprenticeship Levy Transfer Service?

The Apprenticeship Levy Transfer Service allows large employers who pay the apprenticeship levy to transfer up to 50% of their unused levy funds to other businesses, such as dental practices. These funds help cover apprenticeship training costs, making it easier for dental practices to recruit and upskill staff, and provide career opportunities to new apprentices. 

Levy-Paying Employers

If your organisation has an annual payroll over £3 million:

  • The full course fee will be funded directly from your apprenticeship levy pot.
  • If your levy funds are fully used, you can access co-investment, with the government covering 95% of the apprenticeship cost and your business contributing just 5%.

Please note: New apprenticeship funding changes are coming in to play. Check back for more information. 

Non-Levy Paying Employers (SMEs)

If your annual payroll is under £3 million:

  • Apprentices aged 16–21 are fully government funded – no cost to your business.
  • Apprentices aged 22 and over require a 5% employer contribution, while the government funds the remaining 95%.

Please note: New apprenticeship funding changes are coming in to play. Check back for more information. 

Our Levy Transfer achievements 2024/2025

  • £2.4 million overall levy funds raised for dental practices to bring on apprentices.
  • Of that, £1.2 million has been raised for SME dental practices by the NHS.
  • We have secured levy transfer funding for over 300 apprentices.

How Tempdent helps

If you require levy funding for your apprentice, Tempdent can help you source a levy donor and support your application via the Apprenticeship Service. We make securing levy transfer funding simple and stress-free.

Who can gift levy funds?

• Large employers with an annual payroll over £3 million.

• They can transfer up to 50% of their previous year’s levy funds.

• Many pledge funds to support healthcare and dentistry as part of their CSR and local skills development.

Who can benefit?

• Dental practices of any size can receive levy transfers.

• You need an Apprenticeship Service account to accept funds.

• Funds can be used for new apprentices or to enrol current staff members on to an apprenticeship.

FAQs

What is the apprenticeship levy?

A UK tax on large employers (annual payroll over £3 million) to fund apprenticeship training.

How does transferring funds work?

Levy-paying employers pledge funds through the government’s online service. Dental practices apply to receive these funds, which help cover apprenticeship training costs.

How much can be transferred? Can I transfer 50% in one lump sum?

Levy donors can transfer up to 50% of their previous year’s unused levy funds. Transfers are paid monthly for the duration of the apprenticeship, not as a lump sum.

Who can the transferred money go to?

Any business with an Apprenticeship Service account, including dental practices.

What can levy transfers pay for?

Only apprenticeship training and assessment costs up to the funding band maximum. They cannot cover wages, travel, or other expenses.

What do I need to be aware of before transferring funds?

Transfers are a multi-year commitment. Payments leave the donor’s account monthly until the apprenticeship is complete.

Will the receiving dental practice know who is funding their apprenticeship training?

Yes, both donor and recipient connect via the Apprenticeship Service.

What do I do if I want to receive a transfer for an apprentice?

Set up an Apprenticeship Service account, choose your apprenticeship standard, and apply for available pledges. Tempdent can guide you through this process.

How will Tempdent help me secure levy transfer funds for my apprentice?

We’ll identify suitable levy donors, manage the application with you, and ensure your apprenticeships are fully funded and compliant.

Get in touch with our team today to learn how you can donate unused levy funds to support an apprentice, or explore options for securing funding for a new apprentice in your team.

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