The government’s apprenticeship levy, brought in at the start of the 2017/18 tax year, aims to fund apprenticeship positions in businesses and sectors across the country.
All businesses spending £3 million or more per year on salaries are now obliged to pay 0.5% of their salary bill towards the creation of new apprenticeship positions.
Although few small and medium-sized businesses come under the scope of the levy, it nonetheless provides a good opportunity for us to highlight the benefits that come with hiring apprentices.
Finding apprenticeship training
The training provider does more than just ensure your apprentice is trained to the expected standard.
They also help you find and recruit apprentices, oversee the applications for the position and assess the performance of the apprentice at the end of their contract period.
As such, it is important to find a suitable training provider to ensure your apprentices are trained properly, and that you build a good relationship with your chosen provider.
Choosing the type of apprenticeship
You will need to choose either an apprenticeship standard or an apprenticeship framework for your apprentice.
Apprenticeship standards, which are designed by employers, state the skills and knowledge required by candidates to be successful in the role.
Apprenticeship frameworks are broader and encompass all statutory requirements for apprenticeship programmes.
Apprentices who undertake this kind of apprenticeship will not have to undergo an end-point assessment.
If you have created an apprenticeship standard for the position, the apprentice will need to undertake an end-point assessment.
Under these terms, each apprentice will be assessed on the skills and knowledge they have acquired at the end of the apprenticeship.
The end-point assessment will verify whether the individual has achieved an apprenticeship standard after working in your business.
To conduct an end-point assessment, you must pay an apprentice assessment organisation. A list of assessment organisations can be found here.
Funding apprenticeship positions
Businesses that do not pay the apprenticeship levy must make a 10% contribution towards training costs, and the government will subsidise the remaining 90%.
Your contribution will be paid to the training provider during the term of the apprenticeship.
Our business advisers can offer advice and support if you’re looking to hire apprentices for your business.
Get in touch at email@example.com or call 01628 631 056 for more information about our business advisory services.