Apprenticeship Levy

You’re Hired: 96% of Businesses Report Apprentice Benefits

You’re Hired: 96% of Businesses Report Apprentice Benefits

96% of businesses say hiring an apprentice has brought at least one benefit to their business, according to research from the Department for Education (DfE). 202,000 new apprentices are expected to be taken on in the next 12 months, with current trainee-friendly businesses reporting a number of positive outcomes directly related to their fledgling worker. Apprenticeship Levy: What You Need to Know Over 75% of firms that employ novice workers report increased productivity thanks to product/service improvement, while more than 24,000 private enterprises say that hiring a beginner has actually helped them win business. National Apprentice Week runs from March 6-10 which helps raise awareness of the opportunities apprenticeships can offer school leavers, graduates and the unemployed. Mike Cher... »

Important Legal Dates For Small Businesses: 2017

Important Legal Dates For Small Businesses: 2017

Every year brings both new and exciting challenges for business owners, so it’s important to look to the future and arm yourself with the knowledge you need to keep your business competitive. Below are the key dates for upcoming employment law and more general legal changes that every small business owner should know about. Spring 2017 31 March – Article 50 This is the last day in the government’s self-imposed target that Article 50 is expected to be triggered, although it could happen before or after this date. The effect Brexit will have on employment law changes remains unclear. Theresa May reiterated her claim that workers’ rights will remain fully protected when revealing her 12 point Brexit plan, but further details are yet to be revealed. One positive – at least in the short term – ... »

Salary Sacrifice Schemes: What Next?

Salary Sacrifice Schemes: What Next?

Towards the end of 2016 The Finance Bill 2017 was published, containing provisions intended to eliminate tax advantages that many previously enjoyed through entering into salary sacrifice schemes. Salary sacrifice schemes are agreements undertaken between employers and employees to provide non-cash benefits. However, changes to such schemes, announced in November’s Autumn Statement, mean that employers who have these arrangements in place must prepare to adhere to the new legislation coming into effect from 6 April 2017. The change is due to the government’s concerns regarding an increase in the use of salary sacrifice arrangements, especially as employees effectively pay for the benefit themselves through the reduction in their gross pay. What changes are proposed? Consultation documents ... »

Apprenticeship Levy: What You Need to Know

Apprenticeship Levy: What You Need to Know

With the confirmation that the Apprenticeship Levy will come into affect in less than six months, we take a look at what business owners need to know. What is it? The Apprenticeship Levy is a government-led initiative that will require businesses to make an investment in apprenticeships. How much will it cost? The levy will be charged at a rate of 0.5% of a business’s annual pay bill. There will be a levy allowance of £15,000 per year to offset against the levy, meaning only businesses who have a payroll bill above £3m will be obliged to pay. As an example: Example 1: an employer who would pay the levy An employer with an annual pay bill of £5m: levy sum: 0.5% x £5m = £25,000 subtracting levy allowance: £25,000 – £15,000 = £10,000 annual levy payment Example 2: an employer who would ... »

UK Businesses to be Hit with “£29bn in Extra Costs”

UK Businesses to be Hit with “£29bn in Extra Costs”

UK small businesses will be hit with over £29bn in extra costs following the introduction of new government policies, research by the Confederation of British Industry (CBI) has claimed. The national living wage and apprenticeship levy are among new legislation which business owners believe will have a negative effect on small enterprises. The flagship schemes, being introduced in April 2016 and 2017 respectively, are said to cost British businesses around £9bn every year by 2020-21 when added to existing costs. The findings are a stark contrast to an earlier promise that the government would cut at least £10bn in red tape for small businesses over the next five years. Earlier this year, it was reported that small enterprises in Scotland and other lower paying areas would be the most affec... »

Autumn Statement 2015: The Key Issues Impacting Small Business

Autumn Statement 2015: The Key Issues Impacting Small Business

Today, the chancellor of the exchequer George Osborne unveiled the 2015 Autumn Statement– outlining the conservative government’s latest plans for the UK economy over the coming months Prior to the announcement, entrepreneurs called for more regional business support, initiatives to solve the UK’s skills shortage, boost access to finance and abolish Stamp Duty, and while not all wishes were granted – some were. Here, we’ve pulled together the key factors from the statement that will influence small businesses… Reformed business rates and small business rate relief George Osborne announced that uniform business rates will be eliminated and local government will get to keep revenue from business rates by 2020. This, according to the chancellor, is in order to give councils “the tools to driv... »

Government Attempts to Reassure Small Businesses over Apprenticeship Levy

Government Attempts to Reassure Small Businesses over Apprenticeship Levy

The government have tried to reassure small businesses that they will not be affected by the introduction of the apprenticeship levy, stating that only large companies will be forced to pay it. However, the chancellor and government have failed to disclose what a larger company constitutes, with rumours suggesting that the Treasury is considering including businesses with 50 employees. In an interview with The Financial Times, one Whitehall aide said; “We have been clear that it is larger firms that will be focused on,” but the government still haven’t finalised what the cut-off point is. In the summer Budget, George Osbourne announced that large employers would have to pay a percentage (suggested as 0.5%) of their payroll to fund the apprenticeship programme. Under the programme, a compan... »

UK Businesses Split Over Apprenticeship Levy

UK Businesses Split Over Apprenticeship Levy

British businesses are split over the government’s plan to introduce an apprenticeship levy, with a recent CIPD survey having revealed that 39% of businesses owners think it will be a positive measure for business while 31% think it will have a negative effect and 30% remain undecided. Of the businesses who support the levy, 30% said it would incite them to launch an apprenticeship programme and a further 30% believed it would boost apprenticeship numbers. However, 31% of business owners are concerned that introducing the levy will mean sacrificing support in other areas of employee training and development. An additional 22% said the levy might encourage employers to accredit already existing training as apprenticeship schemes and 20% said they believe the levy will cause the quality of a... »