Using levy funds for company cars (employer-provider)

Home Forums Data issues Using levy funds for company cars (employer-provider)

This topic contains 1 reply, has 2 voices, and was last updated by  Martin West 10 months, 1 week ago.

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  • JadeTurnerTC

    Hi all, interested to see what other employer-providers think about using levy funds to pay for company car leases for assessors?

    The rules say funding can’t be used for “75.14. Capital purchases including lease agreements. Capital purchases are long-term assets which have a lifespan beyond the individual apprenticeship being funded for example: land, buildings, machinery and ICT.”

    Cars are leased but they are essential for assessors to deliver apprenticeship training, and assessors will always have apprentices so the ‘lifespan’ of the cars is infinite.

    What does everyone think?


    Martin West

    Hi Jade,
    The funding rules for all Providers include two sections on ‘What can be funded?’ and ‘What cannot be funded’.

    There is a misconception that providers can just set their Training costs at the funding cap maximum less the EPA costs and this may be correct for some as long as they only include the actual training costs as defined in the funding rules.

    You may have to ask advice from your Accounts department as in general you can only claim costs associated with revenue and not capital expenditure and this will exclude vehicle purchase or leasing this also excludes maintenance of these items such as vehicle parts and labour, insurance and MOT although you can claim for revenue expenditure for Travel costs of training staff.

    The funding rules for Employer Providers and Employers who are subcontractor also require then to evidence their cost and they must retain this evidence to demonstrate these costs.

    I think the general intention is that Employers should not gain profit from the Levy and this is demonstrated in that they are allowed to claim staff costs including on costs, but they must exclude any related bonuses as these are normally related to profit or performance.

    I do think this may be a minefield at Audit, but they are the rules.

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