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Taking on an apprentice

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    Taking on an apprentice

    No, nothing to do with the BBC show.

    Has anyone investigated taking on an apprentice? My daughter is interested in it as an option after she takes her GCSE’s this year. I am of course doing my own research, but I’d be keen to hear if anyone else has any experiences? As I understand it, you pay them a wage, and expose them to real-life working environments, and they attend training at college or similar which is subsedised by the government. I have clients and contacts that might support the arrangement.

    This is not some convoluted tax dodge, although I’d also be interested in what the tax implications would be.

    #2
    Originally posted by meanttobeworking View Post
    No, nothing to do with the BBC show.

    Has anyone investigated taking on an apprentice? My daughter is interested in it as an option after she takes her GCSE’s this year. I am of course doing my own research, but I’d be keen to hear if anyone else has any experiences? As I understand it, you pay them a wage, and expose them to real-life working environments, and they attend training at college or similar which is subsedised by the government. I have clients and contacts that might support the arrangement.

    This is not some convoluted tax dodge, although I’d also be interested in what the tax implications would be.
    To be totally honest with you the tax situation should be the very last thing on your list. Your main priority is to make this work and I'll be honest with you I'd be struggling to take my lad on unless every single duck is lined up and it's the very best option for him. If you do this half cocked you are going to set her back years. Investigating the tax issues when all you have is some clients that 'might' support it? A contractor bringing his daughter in and spending a lot of billing time training her up.. I'd be surprised if that will work and even more surprised if it's even remotely comparable to a properly managed apprenticeship.

    I applaud you wanting to help your kids, I try to whenever I can but only if its the very best for them and I'm sorry, this doesn't look like it by any stretch.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #3
      One of the staff members we've taken on to date met the criteria for an apprentice and we went along with the scheme as best we could. We were paying comfortably above the "normal" NMW, so main perk was having a large chunk of the formal study paid for, and I think we got a one off £1.5k "gift" too.

      For me/us, it was more trouble than it was worth. Lots of form filling, meetings with bods to check their progress, can we demonstrate we've done suitable health and safety training etc. I won't bother again, we'll just pay from the business.

      Others will of course have different views, I guess partly depends on which you'd most like more of, time or money. Also apprentices can be paid significantly less than "normal" people, which I guess for some employers would be another perk, they can legally pay people that fit the apprentice criteria far less.

      Comment


        #4
        Originally posted by northernladuk View Post
        To be totally honest with you the tax situation should be the very last thing on your list. Your main priority is to make this work and I'll be honest with you I'd be struggling to take my lad on unless every single duck is lined up and it's the very best option for him. If you do this half cocked you are going to set her back years. Investigating the tax issues when all you have is some clients that 'might' support it? A contractor bringing his daughter in and spending a lot of billing time training her up.. I'd be surprised if that will work and even more surprised if it's even remotely comparable to a properly managed apprenticeship.

        I applaud you wanting to help your kids, I try to whenever I can but only if its the very best for them and I'm sorry, this doesn't look like it by any stretch.
        As per my original post, the tax element is a follow-up consideration, I’m just asking if anyone else has considered the wider topic of engaging an apprentice.

        Comment


          #5
          Originally posted by Maslins View Post
          One of the staff members we've taken on to date met the criteria for an apprentice and we went along with the scheme as best we could. We were paying comfortably above the "normal" NMW, so main perk was having a large chunk of the formal study paid for, and I think we got a one off £1.5k "gift" too.

          For me/us, it was more trouble than it was worth. Lots of form filling, meetings with bods to check their progress, can we demonstrate we've done suitable health and safety training etc. I won't bother again, we'll just pay from the business.

          Others will of course have different views, I guess partly depends on which you'd most like more of, time or money. Also apprentices can be paid significantly less than "normal" people, which I guess for some employers would be another perk, they can legally pay people that fit the apprentice criteria far less.
          Thanks very much - there’s a lot to consider and I appreciate you taking the time to give me your experience.

          Comment


            #6
            I hired three of my kids, two of which are still employees (the other does subcontracting). These are not my only employees so it doesn't make payroll any more of an issue, really.

            My clients love it because they can do some tasks that I would have done and I charge a lot less for their time. It also means projects get done faster, which is usually attractive. If I know it is coming and can plan, I can put 5 or even 6 people on a project and knock it out quickly. That's very attractive, too.

            You aren't close to that but this could be a step in that direction. It does put you into the employer category which brings hassles, a lot of them. Would you have to do pension AE? Etc. You would get to use the employment allowance.

            I looked into the apprenticeship scheme and decided it wasn't worth it, I didn't want the hassle. Too much headache for not enough benefit -- pretty much what Chris said except I made that decision in advance, his comment makes me glad I decided the way I did. Your decision might be different, of course.

            Comment


              #7
              Originally posted by WordIsBond View Post
              I hired three of my kids, two of which are still employees (the other does subcontracting). These are not my only employees so it doesn't make payroll any more of an issue, really.

              My clients love it because they can do some tasks that I would have done and I charge a lot less for their time. It also means projects get done faster, which is usually attractive. If I know it is coming and can plan, I can put 5 or even 6 people on a project and knock it out quickly. That's very attractive, too.

              You aren't close to that but this could be a step in that direction. It does put you into the employer category which brings hassles, a lot of them. Would you have to do pension AE? Etc. You would get to use the employment allowance.

              I looked into the apprenticeship scheme and decided it wasn't worth it, I didn't want the hassle. Too much headache for not enough benefit -- pretty much what Chris said except I made that decision in advance, his comment makes me glad I decided the way I did. Your decision might be different, of course.
              I think what WIB says about being an employer is the key here.
              If you're becoming an employer for just one apprentice, and only because it's your daughter, it's an awful lot of hassle.
              If you intend to employ more people then it's different. A bit of nepotism in deciding who to hire isn't always a bad thing.

              Best bet if you have friendly clients, is see if they'll take the apprentice directly.
              See You Next Tuesday

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