Confused about how the levy affects your business? Here’s your guide to the apprenticeship levy
With nearly a quarter of business owners unsure about what the apprenticeship levy means for their business and how they can access funding, MNA Recruitment have put together your guide to the apprenticeship levy.
Why not join us 13th Feb for our free apprenticeship levy workshop at the Express & Star.
What is the apprenticeship levy?
The apprenticeship levy is a term that is used throughout the employment sector. Despite this, you may not be familiar with what it means.
By definition, an apprentice is someone who is learning. A levy is a fee or a tax to be paid.
The apprenticeship levy is therefore a tax on UK employers to fund new apprenticeships. It was introduced in April 2017.
It is a payment that will be collected from large employers in both the public and the private sectors. The payment is paid to the HMRC and the levy will be charged at a rate of 0.5% of an employer’s payroll.
Each employer gets an allowance of £15,000 to offset against the amount they owe.
Businesses with a wage bill of more than £3 million will be required to pay the fee.
The objective of the levy is to inspire employers to provide apprenticeship programmes. The additional funds will also improve the quality and quantity of apprenticeships.
Businesses who paid into the levy can access the the fund for training within their workplace.
Apprenticeship Experiences – Rebekah
Although information is provided by businesses and the Government, understanding apprenticeships can be tricky. The best way to get your head around the concept is to hear from people who have undertaken the learning programmes themselves. First hand experience can be more engaging and insightful than a textbook style description.
Apprenticeships are taken very seriously at MNA Recruitment.
Rebekah Rowley is currently undertaking a level 2 apprenticeship in business administration. She began in September 2017 and is expected to complete her course in September 2018.
Rebekah said: “I decided to do an apprenticeship to not just gain a qualification, but also to gain experience at the same time.
“My apprenticeship entails supporting MNA Recruitment with various administration tasks such as. This includes uploading job adverts online, managing social media accounts, enhancing and landing pages for the Express & Star website.
“I also deal with customer customer queries, book linage adverts and create spreadsheets to keep track of job applications for all customers.”
Part of Rebekah’s apprenticeship involves learning how to complete mini smarts, which entails advertising on behalf of a customer. The role is varied. One day she could be sending CVs out, the next she could be attending job fairs to market the company and interact with customers.
“Apprenticeships create opportunities with a business,” said Rebekah.
“Once completing your apprenticeship, if you can do the job and there availability then the company may offer training. You gain experience that other businesses may look for.
“There are no negatives within my role, however the wages for apprenticeships are considerably lower than a full time wage. Hopefully the experience will put me in a good situation for the future.
“I found the apprenticeship on the government website and applied that way. A typical day is busy and full of jobs to do, however it is very enjoyable.
“After the completion of my apprenticeship I will gain an NVQ in Level 2 Business Administration.”
Apprenticeship Experiences – Ellie
Like Rebekah, Ellie Taylor took on an an apprenticeship with MNA Recruitment. She began her journey in October 2016, and completed her NVQ Level 2 in Business Administration a year later. Ellie was then promoted to branch resourcer.
Ellie said: “I decided to do an apprenticeship because I have gained a qualification and new skills. There is the possibility of a career at the end of it
“During my course, I had to have discussions and practically show my assessor various things. This included meeting and greeting visitors and dealing with admin. I had to discuss regulations in the workplace.
“The apprenticeship pushed me to take on tasks I had never done before. This was interviewing candidates and dealing with clients. It allows me to progress into more senior roles and take on more responsibilities.
Ellie found her apprenticeship through, Nova Training. She then attended an interview for her place.
She describes a typical day as being busy. Ellie enjoys learning new things and taking on different challenges.
Apprenticeship Levy Workshop
MNA Recruitment is holding a workshop all about how to make the most of apprenticeships.
Held on Tuesday February 13, the event will look at the way businesses can use the apprenticeship levy effectively. This will help to develop work forces and meet future staffing needs.
“Making the most of apprenticeships” is taking place at the Express & Star offices in Queen Street, Wolverhampton. From 9:30am until 12:30pm, the workshop is by invitation only. Lindsey Flynn, from our partners Well Associates will be giving a talk and running the workshop.
Lindsey has both a BA and a Masters degree from Oxford University. She also scooped the Express & Star Business Person of the Year award in 2017. Lindsey now leads the consultancy area of Well Associates. She directs the consultancy support on major national and regional programmes. Additionally, she provides the specialist insight to management training. This helps organisations to access funding.
The workshop is running is part of MNA Recruitment’s January campaign.
Director of recruitment services Lee Smith said: “The workshop will focus upon how businesses can use the apprenticeship levy.
“We will look at future staffing needs and development strategies.
“MNA Recruitment is a new combined offer in a competitive market. This year started with a campaign to raise awareness.
Marketing executive Natalie Coughlan said: “Our brief was to make people aware of the MNA’s jobs services.
“The apprenticeship workshop will help employers understand the concept.”