APPRENTICESHIPS
Apprenticeships
An apprenticeship is a way for young people and adult learners to earn while they learn in a real job, gaining a real qualification and a real future.
82%* of employers believe that hiring apprentices help businesses to grow their own talent by developing a motivated, skilled and qualified workforce.
A new standard called the Payroll Administrator apprenticeship is in development currently which we hope will be in place later this year and will provide you with further details in due course. This is a direct result of government changes leading to the intermediate and advanced apprenticeship in payroll framework expiring on 30 November 2016.
If you wish to review other education options in the meantime, the CIPP offers a wide portfolio which can be viewed here or you can call 0121 712 1000 to discuss options. Alternatively, we will contact you regarding apprenticeships when information is available.
The apprenticeship levy As part of the government’s commitment to apprenticeships in England and their pledge to provide funding for three million apprenticeship starts by 2020[1], in the summer budget of 2015 the Department for Business innovation and skills (BIS) announced an apprenticeship levy that will be introduced in April 2017 that will affect all employers with an annual pay bill of £3m.
Since this announcement BIS has consulted with employers and while the detail is still being worked through prior to the introduction of the Levy, this fact sheet begins to explore some of frequently asked questions.
The levy aims to put the employer at the heart of the delivery of apprenticeships that are fit for purpose in industry that also increases their quality, holding both the employer and the training provider accountable.
The levy will be introduced on 6 April 2017 and will affect all employers in both public and private sectors and will be payable by employers whose pay bill exceeds £3 million in a tax year.
The government has provided the following example calculations:
Example one ● Employer of 250 employees, each with a gross salary of £20,000 would pay:
❍ Pay bill – 250 x £20,000 = £5,000,000 ❍ Levy sum – 0.5% x £5,000,000 = £25,000
Allowance of £15,000 is taken into account so a payment of £10,000 would be payable.
Example two Employer of 100 employees, each with a gross salary of £20,000 would pay:
● Pay bill – 100 x £20,000 = £2,000,000 ❍ Levy sum – 0.5% x £2,000,000 = £10,000 ❍ Allowance of £15,000 is taken into account there would no annual levy payment.
It will be collected monthly by HMRC through PAYE and is likely to be payable with remittances for Income tax and National Insurance contributions (NICs). The pay bill will be calculated on total employee earnings that are liable to Class one secondary NICs.
For more information on apprenticeships, visit cipp.org.uk or email info@cipp.org.uk
* taken from apprenticeships.gov.uk
15 Please note that the CIPP continually updates its products and services to ensure that they meet the needs of the industry, therefore content is subject to change without prior notification. Please visit cipp.org.uk for the most up to date information.
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