Lyn Joyce

levy to non levy


We have an employer who was connected to a large employer and therefore classed as levy paying, since the start of August we have now been informed that the business has been franchised out and is no longer classed as a levy paying business, do i  need to do anything with the apprentices that are still in the same site but are drawing down there funding from the levy, whereas due to a change of circumstance they are technically now non levy? MITA


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Martin West

This can be complicated if the franchise is a connected company (Part owned or controlled) if not then this is the same as a change of employer and the new employer will need to have a DAS account.


Cripes, hadn't thought of that complication Martin! In general though, a company falling out of levy doesn't mean a change to the Apprentices who are on programme's ILR, except there will be definitely be employer contributions required. New starts would be non-levy from the beginning.

Martin West


What you say about those who fall of levy funding is correct, but the post is about when a large employer franchises out one or more of their sites to another organisation.