The word apprenticeship comes with a lot of baggage in the modern world.
From its immoderate associations with Alan Sugar to outdated jokes about making the coffee, the word is often positioned in a negative light that sometimes makes businesses reluctant to get involved.
However, this misconception hides the fact that apprentices are an excellent way of getting young talent and fresh perspectives into a business.
It also ignores the tremendous value that businesses can find through the Apprenticeship Levy.
What Is The Apprenticeship Levy?
The Apprenticeship Levy is a tax placed on UK companies with an annual salary bill of £3 million or more. The tax is paid at a rate of 0.5% of the total salary bill, meaning that a company with the minimum salary bill of £3 million would pay £15,000.
Any company paying the Apprenticeship Levy can access these funds and use them to pay for an apprentice’s training. Given that the tax will be paid regardless, in essence, this means that an apprentice can be trained for free.
Companies with a salary bill lower than £3 million cannot use the Apprenticeship Levy, but they can still access government funding. In this case, the government pays 90% of the apprentice’s training, while the employer pays 10%. This will change to a ratio of 95:5 in April 2019.
When Does The Apprenticeship Levy End?
The Apprenticeship Levy is not without its restrictions. Any business that’s part of the initiative must use their funds within 24 months.
This 24 month time period begins when the Levy funds first enter the business’s account. So, if that happened in July 2017, the money will expire in July 2019. As the scheme began in April 2017, some businesses’ funds will no longer be accessible as early as April 2019.
There are no extensions to this deadline, and once the money is gone, it’s gone. It reverts back to the Treasury and there’s no way of retrieving it.
So if your business is paying into the Levy and your deadline is coming up, now’s the time for them to take advantage, hire an apprentice and get full value from the scheme.
How Do I Hire An Apprentice?
We here at Code Nation have developed a unique way of identifying and training great new tech talent through the Apprenticeship Levy.
Our Pledger scheme allows businesses to work with us to hire new members of staff and apprentices. We slot into their current procurement programmes easily and efficiently, either working independently or hand-in-hand with recruitment teams. The choice is up to each individual business.
Once a company is on-board, they can view CVs and attend a recruitment/assessment day where they can find the students best suited to them.
Students then take our 12-week Master: Coding course, during which they learn all the key tech skills, professional skills and soft skills to make them a brilliant Junior Developer and a fantastic asset to any organisation.
Best of all, by using the Apprenticeship Levy, it’s all essentially free for businesses since they’re already paid the money and can’t get it back.
The Apprenticeship Levy is an invaluable way for businesses to get great new talent, but time is running out.
While the programme is ongoing, the funds that have been paid in since 2017 will lapse. So it’s use ‘em or lose ‘em time, and we can help you use ‘em to their maximum advantage.
If you’re interested in learning more about what apprentices could offer your business, get in touch with us today!
Call: 0333 050 4570