Is your business in the accounting and finance sector? Are you aware about the Apprenticeship Levy? If not, you are not on your own as 33% of businesses are still not.
Well according to a recent survey carried out by the alliance Manchester Business School this is exactly the situation. Those who are aware are not taking full advantage either, despite evidence from AAT which found that in 2017/2018, accounting apprenticeship registrations increased by 12% across levels 2-4 compared to the previous year.
This is measured against an overall 24% decline against all apprenticeships for the same period in all sectors.
Of those questioned in the survey who were employees, some 56% of them said they knew nothing about it and this is despite 77% of the same employees saying when questioned, that quality training is important to them when deciding whether or not to stay in a job or not.
This appears to be extremely worrying considering some 32% of GB accounting and finance businesses are worried about maintaining quality teams over the next two years.
So the employers are worried about maintaining quality highly trained staff, employees are saying they look as self development and training as part of their career when making choices on staying or leaving and 35% or those same Employers in the accountancy and finance sector saw the Apprenticeship Levy as “Just another Tax” on business. On top of this just under a third (thirty-one percent) adding that it actually made no difference at all.
Dr David Lowe from the Alliance Manchester Business School reacting to the report commented that there is a limited awareness throughout the workplace, covering both employers and their staff alike, but also the business owners and key personnel who make the key decisions are just not aware about what it offers..
What is the Apprenticeship Levy?
The levy is essentially the opportunity to access help from the government to pay for apprenticeship training. The amount of help will vary and depend primarily on whether they will pay the Apprenticeship Levy or not? If your pay bill of over £3 million each year you must pay it in full.
If this is not the case a business will only pay 10% towards the cost of any training for an apprentice including any assessments. This is done by;
- Agreeing with a training organisation a dedicated schedule for learning and payment
- From this the business will then pay them the 10% directly.
The government will then pay the rest (90%) up to the funding band maximum directly to the training organisation.
If you pay the levy
You’ll receive funds to spend on training and assessing your apprentices. The government will add 10% to these costs for this.
How you get the funds and pay for training all depends whether you are in England, Scotland, Wales or Northern Ireland.
Further information can be found here; https://www.gov.uk/take-on-an-apprentice/get-funding
For Businesses looking for information on how to pay the apprenticeship levy https://www.gov.uk/guidance/pay-apprenticeship-levy#how-much-you-need-to-pay