I’m interested in taking on an apprentice, but I’m a sole trader. Can I still hire an apprentice?
Yes, absolutely. An apprentice can be taken on by any business. They do however, have to work for a minimum of 30 contracted hours a week. (Please contact to our Business Development team at info@KEITS.co.uk if you are interested but cannot offer 30 hours a week).
It is important that your business is committed to offering a valuable work experience and that you can dedicate the time needed to mentor/train your apprentice.
What do you need to do?
If you have no other employees and this will be your first member of staff you will first need to:
- Choose a rate of pay – Apprentices must be paid the minimum hourly wage (currently £6.40). However, we really recommend assessing your finances to find the best possible wage for your apprentice that is affordable. This ensures you retain talent and build a great relationship with your apprentice. It’s also worth noting that if your apprentice is 19+, after the first year of their apprenticeship they’ll be eligible for the national minimum wage (depending on age).
- You must provide your Apprentice with a Contract of Employment from their first day (including any trials or probation periods) and payslips.
- Obtain Employer’s Liability Insurance – In the UK, Employers Liability Insurance is a legal requirement from the moment you take on your first employee. It’s also a legal requirement to display your employer’s liability certificate.
- Register As An Employer With HMRC – HMRC will need to be informed that you are now an employer. This can be done using the government portal, but you’ll need to time this around 4 weeks before you first pay your new staff member. It can take a little time, but HMRC will then issue you with a PAYE number for that employee. It may be worth consulting with an accountant at this point, as running payroll can be a tricky task. You’ll need to consider things like National Insurance Contributions and what PAYE tax band your employee falls into.
- Do Your Research Regarding Pension Schemes – If your apprentice will be earning over £10,000 a year, or is 22 or older, then you will be legally required to enrol them onto a workplace pensions scheme. You must inform your apprentice of the scheme and enrol them within 6 weeks of them meeting this criteria, but they can opt out if they wish. As an employer, you’ll have to make pension contributions on your apprentice’s behalf – it isn’t all taken from their salary. Again, we recommend consulting with an accountant if you are unsure of this.
- Taking on your first employee or apprentice is a huge task for any small business, but may also be the best decision in order to grow talent from within the business.
For help and advice on hiring an apprentice please contact us today.