If you are thinking of hiring in additional talent to your business, an apprentice is usually a great start.
In this blog, we run you through why this may be an even better idea than usual right now, as you could gain up to £2000 (or even £3000!) for hiring an apprentice after 1st August 2020, as part of the announcement around the ‘Kickstart Scheme’.
In the chancellor’s Summer Statement, as part for the government’s ‘Plan for Jobs’, it was announced that there would be additional payments made to employers who hire eligible apprentices.
We are expecting further details to be out soon after the release of this blog.
But, for now, these are the headlines:
Apprenticeship Employer’s Payments
- The scheme applies from 1st August.
- If the apprentice is 16-24, they will get £2000. If they are 25 and over it will be £1500.
- You currently get £1000 for taking on apprentices aged 16-18 anyone (or under 25 with an EHCP [education healthcare plan]), so this is in addition.
The ‘Kickstart Scheme’ is designed for employers to take on additional – or their first – young apprentice:
- Employers can use the ‘Kickstart Scheme’ to take on young apprentices (aged 16-24).
- The scheme will fund 25 hours a week for a new apprentice (at min wage) for 6 months.
As a side note, the employee(s) under the Kickstart scheme do not have to be on an apprenticeship, by default it is a ‘work placement’.
HMRC has mentioned the policy document that the scheme is targeted to those receiving universal credit.
As you can see, there’s never been a better time to take on an apprentice – just remember to get the payroll and employment law details right. If you need any help with this, please do get in touch with one of our payroll team.