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Non-Apprenticeship Levy Paying Employers

As an employer that doesn’t pay the apprenticeship levy, you pay just 5% towards the cost of training and assessing an apprentice.

The government will pay the rest up to the funding band maximum.

You’ll pay the training provider directly and agree on a payment schedule.

If you employ fewer than 50 employees, the government will pay 100% of the apprenticeship training costs up to the funding band maximum for apprentices aged:

  • 16 to 18
  • 19 to 24 with an education, health and care plan provided by their local authority or has been in the care of their local authority

Asset Training is an independent training provider with a proven track record of offering employer-led Apprenticeships to Non-Levy employers. Our Learning Facilitators have unrivalled knowledge and industry experience and will work in partnership with you to co-design and deliver a bespoke programme that aligns with your employee goals via our Curriculum planning visit that will take place before the Apprentice starts their programme with us.

You can recruit new Apprentices for your business bringing in new talent but also access funding for your existing workforce to up-skill them in areas of your choice. Asset Training can help you establish areas for development with an Organisational Needs Analysis.

Incentives

Employers can apply for a payment of £3,000 for new apprentices of any age who have an employment start date of 1 October 2021 to 31 January 2022. These apprentices must also have an apprenticeship start date of 1 October 2021 to 31 March 2022.

Applications close 15 May 2022.

The incentive payment is in addition to the £1,000 employers already receive for hiring an apprentice:

  • aged 16 to 18 years old
  • aged 19 to 24 with an education, health and care plan or who has been in the care of their local authority

Paying employer National Insurance contributions

Employers may not need to pay Class 1 National Insurance contributions for an apprentice, if the apprentice is:

  • under 25 years old
  • on an approved UK government apprenticeship standard or framework (these can differ depending on country)
  • earns less than £967 a week (£50,270 a year)

The apprentice, as an employee, will continue to pay Class 1 insurance contributions through their salary, this will only benefit the employer.

Read HMRC’s guidance on paying National Insurance contributions.

Information from: https://www.apprenticeships.gov.uk/employers/funding-an-apprenticeship-non-levy

Why Would I Take on an Apprentice?

There is a range of visible business benefits associated with apprenticeships. These benefits can be enjoyed by companies in virtually every sector.

Apprenticeship schemes help to ensure that your business has precisely the skills it needs. No-one knows your business better than you do, and apprenticeships allow you to impart this knowledge to potential employees-meaning you end up with a workforce that is perfectly suited to the unique demands of your company.

What’s the Cost of Hiring an Apprentice?

You will need to pay at least the minimum wage, which is currently £3.90 per hour for apprentices. Remember the rate is reviewed every April. All apprentices are entitled to this rate if they’re aged under 19, or aged 19 or over and in the first year of their apprenticeship.

If your apprentice is aged 19 or over and has completed the first year of their apprenticeship, you’ll need to pay the correct minimum wage for their group.

What are My Responsibilities?

If you are considering taking on an apprentice for the first time, it is vital that you are aware of your responsibilities. Broadly speaking apprentices are entitled to the same working rights as conventional employees.

An apprentice is an employee of your business and you must ensure that they receive at least the basic working rights. In practice this means that apprentices must, amongst other things:
• Be paid at least the National Minimum Wage.
• Receive at least 20 days’ paid holiday, in addition to bank holidays.

It is also important that you understand the nature of the apprenticeship training process. The training received by each apprentice should follow a framework, which is set by the National Apprenticeship Service.

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