Employer guide to apprentice

/Employer guide to apprentice
Employer guide to apprentice 2018-12-20T09:41:17+00:00
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What is an apprenticeship, exactly?

Apprentices are aged 16 or over and combine working with studying to gain skills and knowledge in a specific job. Apprenticeship can help an employer to bridge the skill gap a required for the organisation with a choice of hiring a new apprentice or upskilling the existing workforce.

Why employers need an apprentice?

How to go about hiring an apprentice?

Hire an apprentice

Choose the apprentice by Job role or skill and a required level for your business. Click here to view applied Business academy apprenticeship programmes.

Check with Applied Business Academy for funding options

Applied Business Academy will find you a suitable apprentice

Make an apprenticeship agreement and commitment statement with the apprentice.

Make an apprenticeship agreement and commitment statement with the apprentice.

Upskill existing workforce with or without levy

Choose the apprentice by Job role or skill and a required level for your business. Click here to view applied Business academy apprenticeship programmes.

Provide information and advice to your staff on apprenticeships.

After suitable staff selection for the Apprenticeship.

Get upto 100% of the training and assessment costs funded by the government.

Make an apprenticeship agreement and commitment statement with the apprentice.

Applied Business Academy will take the responsibility of running the apprenticeship scheme for you as your apprenticeship training provider.

What is apprenticeship levy and how does it work for your business?

The government has introduced the apprenticeship levy, a compulsory tax on employers to help fund the development and delivery of apprenticeships, with the aim of improving the quality and quantity of those available.
Apprenticeship levy came in to effect in April 2017

Employers fall into one of two groups: levy payers and non-levy payers. Employers with a paybill of more than £3 million are required to pay the levy – whether they employ an apprentice or not. Your paybill includes all payments to employees that are subject to Class 1 secondary National Insurance Contributions, such as wages, bonuses and commission.

Example: (Levy Paying company with paybill of £5,000,000)

Levy Sum: £5,000,000 x 0.5% = £25,000
Levy Allowance: £15,000
Levy Payment: £25,000 – £15,000 = £10,000 (Payment due)

The levy due by an employer is paid to HMRC through the Pay-as-you-earn (P.A.Y.E) process alongside payment of Income Tax and National Insurance contributions and is held in a ‘digital fund’ that employer can use to pay for apprenticeship training. A 10% contribution is added to each monthly payment.

The £15,000 levy allowance is divided monthly so you will only pay for a given month if your liability is less than £1,250. Any unused allocation money will carry over towards the next month.

For example, if your company only used £1000 of your levy allocation money in month A, alongside not paying the levy for that month, your allowance would also be £1,500 for month B.

If you are in a group of companies paying the levy together, your group can already set up a single shared apprenticeship account and pool your funds. Read more about how to register connected organisations.

When a group of companies are connected, they can only use one £15,000 levy allowance. However, this allowance can be split towards all businesses in the group but this must be decided and notified to HMRC before the start of the tax year, it cannot also be changed for the rest of the tax year.

A company that pays the levy will have access to the new digital account system. This will enable you to pay for training and assessment for Apprentices in England, provided as a voucher system. You are also able to search for training providers like Applied Business Academy to help deliver your Apprenticeship programme. You can register with this service here:

https://www.gov.uk/guidance/manage-apprenticeship-funds

However, digital funds and government funding cannot be used for:

  • Apprentice wages
  • Apprentice travel and subsistence costs
  • managerial costs
  • traineeships
  • work placement programmes
  • the costs of setting up an Apprenticeship programme

Your company will have up to 24 months to spend these vouchers or they will otherwise expire and cannot be used again.

Non-levy paying employers still have to make a small contribution towards training an Apprentice.

Any Businesses with under 50 employees won’t need to pay for anything taking on a 16-18 year -old Apprentice, with the government contributing 100% towards the total cost of training.

Your Internal Workforce Development Program can be funded through the Apprenticeship Levy, provided the employee will be learning new skills/knowledge, the Apprenticeship is relevant to their role and is the most appropriate way towards progressing their career.

At Applied Business Academy, we would like to help your business take advantage of the Apprenticeship Levy and alleviate any concerns you may have. Please contact us for an in-depth discussion.

Why employers choose Applied Business Academy?

What to expect from Applied Business Academy?

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