Apprenticeships help employers develop their workforce, improve productivity, and address skills gaps. Apprentices are employees, so they must have a contract of employment and receive the same rights and benefits as other staff. Apprenticeships can start at any time of year.
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Pay, Costs and Incentives for Apprenticeships
Apprentices at NKC Dartford College are employed by your business and must be paid for both their working hours and training time. They are entitled to the same employee rights and benefits as other staff, and while the National Apprenticeship Wage applies, employers are encouraged to pay above this where possible.
There is no cost to the apprentice. For employers, training costs depend on whether your organisation pays the Apprenticeship Levy. Levy-paying employers use their digital account to fund training, while non-levy employers may contribute a small percentage of the cost. Smaller businesses may be eligible for full government funding when recruiting younger apprentices.
Employers may also be eligible for financial incentives when recruiting apprentices aged 16-18, subject to the apprentice remaining in employment and training.
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Start Dates, Duration and Qualifications
Apprentices are paid for their time in the workplace and whilst they are training. They are employed by your business and are entitled to the same employee rights and benefits as other people in the business. We encourage employers to pay above the apprentice rate. Once the apprenticeship has been completed the apprentice will have both a recognised qualification and experience within their chosen field.
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What is the Apprenticeship Levy?
The Apprenticeship Levy is a government initiative designed to help employers invest in training and develop their workforce through apprenticeships.
For businesses with payroll over £3m
For businesses with an annual payroll over £3 million, 0.5% of their wage bill is paid into a digital apprenticeship service (DAS) account via PAYE, with an additional government top-up. These funds can then be used to pay for apprenticeship training. Funds are available monthly and must be used within a set period before they expire.
For businesses with payroll less than £3m
For smaller businesses with a payroll under £3 million, apprenticeship training is partly funded by the government. Employers may be required to contribute a small percentage of the training costs, depending on the size of the business and the age of the apprentice. In some cases, particularly for smaller employers recruiting younger apprentices, training may be fully funded.
How do I access my digital account?
Your Levy funds will be allocated to your digital apprenticeship service (DAS) account. You will need to create this account through the HMRC website.
How is the levy taken?
The levy will be payable through the PAYE system alongside income tax and National Insurance payments.
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What is the length of an apprenticeship?
Programmes typically take a minimum of a year to complete, but some programmes can take up to two or three years, depending on the specialism of the apprenticeship.