If you are an employer with a payroll of less than £3million, you are not required to pay the apprenticeship levy and are therefore non-levy funded employers.
Non-levy employers will share the cost of apprenticeship training with the Government and this is known as co-investment. The current co-investment requirement is 10% of the of apprenticeship funding, with the Government contributing the remaining 90%. The apprenticeship funding is based on a series of funding bands and these are negotiated between the employer and the training provider.
Currently non-levy employers can only work with approved training providers who have been allocated funds from the Skills Funding Agency. The Apprenticeship digital service is only open to levy employers at this time, but the hope is to move all employers onto the apprenticeship service in 2019.
Employers will need to agree a payment schedule with their chosen provider and pay them directly for the training. The provider must prove that you have paid your contributions as a condition of government paying its contribution.
To choose training you can use the ‘Find apprenticeship training’ service to select an approved apprenticeship training provider.