Are you an employer looking to hire apprentices?
We are here to answer some questions you may have
Why Hire Apprentices?
Here are just a few of the ways that hiring apprentices can benefit your business.
You may be able to get up to £3000 incentive payment for hiring a new apprentice
Every business will do things in a slightly different way, so hiring apprentices means you can train them to fit the role perfectly
Existing employees can start an apprenticeship, so they can train at a higher level while continuing to work for you
If you are a levy employer, you are already paying towards apprenticeship training, so you might as well use it. If you are a non-levy employer, you only pay 5% of the cost of apprenticeship training, with the government funding the remaining 95%
If you are interested and want to know more, please get in touch via our Contact Page
Hiring an Apprentice
How to hire an Apprentice
You will need a PAYE Scheme Reference number to register for the service.
Guidance on registration can be found here.
First, you need to choose an apprenticeship for your business. You need to consider the area of study you want to provide and the level of qualification for the apprenticeship. The government website has a service where you can search for apprenticeships and training providers.
Search for Apprenticeships
Choosing a training provider can be done via the Government website. You should choose a training provider that teaches the right course for your apprenticeship
Search for a training provider
The funding you receive depends on whether or not you pay the Apprenticeship Levy. If your annual pay bill is over £3 million you pay the apprenticeship levy.
You may also be entitled to incentive payments for employing a new apprentice. Check whether you can get incentive payments here.
You will need to advertise your apprenticeship to potential apprentices. This can be done privately or through an apprenticeship advertising service. Advice for how to use such a service can be found here.
You will need to form an apprenticeship agreement once you have successfully recruited some apprentices. The government website can provide a template for such an agreement, which can be found here.
What are they and how do they work?
What is an Apprenticeship Levy?
An Apprenticeship Levy is a fund that helps businesses employ apprentices. Companies who’s annual pay bill is over £3 million pay an apprenticeship levy. This can be used for training apprentices. Any amount that is unused defaults to the government and is used to fund apprenticeships for Non-Levy Employers
Funding an Apprenticeship
for Levy Employers
for Non-Levy Employers
What you pay
You pay 0.5% of your annual pay bill minus a £5000 government allowance. This money goes into your levy funds.
What can I do with Apprenticeship Levy Funds?
The government tops up your apprenticeship levy fund by 10%. The money in your levy fund can only be used for the training and assessment of apprentices. If this money is not used within 24 months, it will default back to the government to help fund other apprenticeships.
What you pay
You pay a 5% contribution to the cost of training, and the government with fund the other 95%.
You will need to reserve funds for the cost of training your apprentices. This can be done via the Government website.
You can also give permission for your training provider to reserve funds on your behalf.