Taking on an apprentice

[telectrix]

the government obviously assuming they'll steal enough off him between ages 25 and the then retiring age of 105 to give him a pension.

 

[atm84]

if your apprentice is under the age of 21, you do not have to pay employer Class 1 National Insurance up to the secondary threshold of£42,385.

How many 16 year olds earn £42,385 a year

 

[atm84]

You pay on top, they would be tax exempt under 10,600 a year but they would still pay their Ni contribution, the employers is around 13% on top, it is just the way it is, the government usually pays for the training and will give up to 1500 a year off the companies NI total bill though.

MDJ, I am confused as some other guys are saying that if the apprentice is under 21 then you don't pay NIC

 

[danzor]

You don't pay NIC if under 21.

Speak to your accountant if you have one.

If you go through a college Apprentice scheme make sure you claim the AGE Grant. I think this December is the last chance.

 

[atm84]

Cheers Danzor that's great.

 

[Guest77]

MDJ, I am confused as some other guys are saying that if the apprentice is under 21 then you don't pay NIC

I didn't know that, it wasn't the case when I had apprentices, but the guys may well be right.

 

[rich.250]

The new system for apprentice grants is pretty good in my opinion.
If there under 18 you get 3 grants totalling £10,800.
Then you have to pay £180 a month for training costs.
Which means it is tax deductible and the VAT can be claimed back.
Best to speak to your local training centre.
Also I would recommend payroll software.
It will do all the hard work - payslips, tax amounts, holiday totals etc
All for about £70 a year!!

 

[atm84]

The new system for apprentice grants is pretty good in my opinion.
If there under 18 you get 3 grants totalling £10,800.
Then you have to pay £180 a month for training costs.
Which means it is tax deductible and the VAT can be claimed back.
Best to speak to your local training centre.
Also I would recommend payroll software.
It will do all the hard work - payslips, tax amounts, holiday totals etc
All for about £70 a year!!

Three grants? What are they. I have only heard of the AGE grant which is £1500

 

[rich.250]

It changed this year, so September.
If you have under 49 employees ( so near enough everyone)
You'll receive £5400 after 3 months, £2700 a bit later and £2700 when they complete.
Have a look on google.
Only financial downside is finding the £180 a month.
Although it is tax deductible and the total you pay is £8600 ish.
So a win win in the long run.

 

[danzor]

What scheme is that Rich? Is that not the cost of the course the government pays?

 

[rich.250]

It's the new scheme. The government are changing the way they fund and electrotechnical is one of the first ones.
Funded by the the skills funding agency.
It's called a trailblazer apprenticeship.
It comes up on the gov site

 

[atm84]

Why change from what it used to be? It seemed to work ok before.