Is your business ready for the levy?
Is your business ready for the levy?
Checklist
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Establish whether you will be required to pay into the apprenticeship levy
Calculate your payments and expected funding
Understand what is required to administer the levy
Register for a digital account
Get ready for the levy – a checklist for employers
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Establish whether you will be required to pay into the apprenticeship levy
do you have an annual pay bill of more than £3 million? are you connected to other companies or charities for Employment Allowance which in total have an annual pay bill of more than £3 million?
YES
Get ready for the administration of operating the levy. Move to step 2
NO
You can still access funding to support apprenticeships in your business/practice. Move to step 4
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Understand what is required to administer the levy
from 6 April 2017 you will have to tell HMRC how much you owe each month towards the apprenticeship levy using the Employer Payment Summary (EPS) if your paybill unexpectedly increases to more than £3 million, you’ll need to start reporting this when it happens – remember this includes any connected companies or charities if you have started paying the apprenticeship levy, you’ll need to continue reporting until the end of the tax year even if your annual pay bill turns out to be less than £3 million You must keep records of any information you have used to calculate your levy payment for at least 3 years after the tax year which they relate to
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ll employers in England have access to a new, easy-toA use digital apprenticeship service to help you manage your apprenticeship programme. Using the tool you can calculate whether you will pay the levy or not and what funds you will have to spend on apprenticeships. It also shows how much the government will contribute towards the cost of training. Access the tool here.
etting up an online apprenticeship account is very straight S forward using this link.
Calculate your payments and expected funding
Register for a digital account
The application will take 5–10 minutes. To speed up the process, ensure you have the following information: the Government Gateway login details for your PAYE schemes (ask your payroll department if you don’t have access to this) the organisation’s Companies House number or Charity number (only if your organisation has one)
Is your business ready for the levy?
For all employers through estimate my apprenticeship funding, you can calculate whether you will pay the levy or not, and what funds you have available to spend on apprenticeships – it also shows how much the government will contribute towards the cost of training find apprenticeship training gives you easy-to-digest information on the choices available to you. You can search for and find an appropriate standard or framework, a quality-assured training provider, and compare one provider with another
through recruit an apprentice, training providers can post vacancies for apprenticeships and traineeships on behalf of employers – this will be opened up to employers at a later date. If you are looking for a finance and accountancy apprentice you can use the ACCA Job Board to advertise your vacancy direct to apprentices specifically looking for opportunities in this sector
If you are looking for a finance and accountancy apprentice you can use the ACCA Job Board to advertise your vacancy
Additional services for levy-paying employers In addition to the functions available for all employers, from May 2017 levy-paying employers will be able to access funding for apprenticeships through your digital account. This will allow you to: negotiate and pay for apprenticeship training and assessment manage your funding and apprentices, view your account balance and plan your spending stop or pause payments (for example, if your apprentice stops their training, takes a break from training or you haven’t received the service agreed with the provider)
Is your business ready for the levy?
Accessing and using the funds for levy payers Employers paying into the levy
Employers who don’t pay into the levy
Funding will appear in your digital account from the end of May 2017 and you have 24 months to spend the funds (‘vouchers’) before they expire.
While you can still register for a digital account, you will be operating under a different system in terms of funding and payment for services related to training the apprentice.
The costs of any training and assessment undertaken by the apprentice is spread over the lifetime of the apprenticeship in monthly payments.
As an employer who is not expected to pay into the levy, you still stand to gain funding. You will be expected to pay 10% of the training and assesment costs, while the government will cover the remaining 90% up to the maximum of the funding band for the apprenticeship standard you have selected – as both the employer and the government make a contribution this is called co-investment.
You will be asked to accept an agreement with the Skills Funding Agency before you can spend funds from your account. You will be notified in your account when the agreement is available. Should you find you have insufficient funds , you will be required to co-invest 10% of the outstanding balance for that month, with the government paying 90% of balance as long as you have negotiated a price that falls within the maximum funding for that apprenticeship standard. If the costs you have negotiated with the training provider have exceeded the maximum funding band you will be required to pay all the additional costs.
ip: The new apprenticeship reforms aim to give T employers more control over the training they buy including agreeing a price with the training provider. As the employer you now have the ability to negotiate on both price and design of the programme.
Understand what is and is not covered by funding Funds in your apprenticeship service account, and funding provided by the government through co-investment, can only be used towards the costs of apprenticeship training and end point assessment. This must be with an approved training provider and approved assessment organisation. Funds can’t be used on other costs associated with your apprentices or wider training effort. For example wages, statutory licences to practice, travel and subsidiary costs, managerial or brokerage costs, traineeships, work placement programmes or the cost of setting up an apprenticeship programme. You can find more detail of what can be funded in the apprenticeship funding rules.
The costs of any training and assessment undertaken by the apprentice is spread over the lifetime of the apprenticeship in monthly payments
Is your business ready for the levy?
Benefits to hiring an apprentice
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Taking on an apprentice is a small investment that delivers huge returns. 76%* of employers who take on apprentices agree that they make workplaces more productive, and 77%* say they make them more competitive.
59%* of employers report that training apprentices is more cost-effective than hiring skilled staff. Training providers and ACCA will work with you to recruit apprentices, develop your training programme and access funding. The ACCA online job board will also help you find and hire the right people.
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Providing an apprenticeship programme shows commitment to long-term development, leading to higher retention. 92%* of employers who employ apprentices say that apprenticeships lead to a more motivated and satisfied workforce, with staff members contributing to their apprentices’ training and valuing the chance to help them.
Your existing staff can use the ACCA apprenticeship programme as a foundation for developing advanced skills, right up to chartered certified status. The programme also offers opportunities to go on to gain undergraduate and Masters degrees.
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Apprenticeships are a powerful way to attract new talent into your organisation. By providing an ACCA apprenticeship, you can engage diverse local and national talent and offer an alternative to university that allows people to launch and build their careers.
57%* of employers report a high proportion of their apprentices progress into management positions within their organisations. By working with ACCA, you can develop the right type of scheme to create long-term assets for your business.
Apprenticeships make good business sense
Drives motivation and retention
Introduces fresh perspectives and new ideas
57%*
of employers report a high proportion of their apprentices going onto management positions within their organisations
Makes hiring simpler and cheaper
Develops existing staff
Builds a talent pipeline
Support from ACCA If you are interested in developing the skills of your team in the area of accountancy and finance through apprenticeships, ACCA can support you to: find an apprentice – we can enhance you
search for talent by providing you access to our accountancy and finance job board
explain which ACCA qualifications are eligible for
staff and how they will support you in developing the skills your business needs
explain the end point assessment process
involved when choosing ACCA
find and select a training provider
To access the ACCA Job Board, visit: jobs.accaglobal.com For more information or to arrange a call back, please email apprenticeships@accaglobal.com
*Source for all statistics: The Benefits of Apprenticeships to Businesses; A report for the Skills Funding Agency by cebr.com