Apprenticeships in Accountancy First Intuition. Apprenticeships on offer from September 2016 (frameworks) How to apply. Eligibility Criteria

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1 currently offers accountancy apprenticeships for students studying the AAT, CIMA and CFAB qualifications. A number of changes are proposed to the way in which apprenticeships are funded and delivered from April This document sets out what is available with, with the aim of helping you choose the right programme for your business. If you are an employer and would like to meet us to talk about your requirements in more detail or how to launch a school leaver programme, please info@fi.co.uk and specify your preferred location. We will be issuing further guidance on new apprenticeship standards which are deliverable from May 2017, as the Government announces further details later in the year. Apprenticeships on offer from September 2016 (frameworks) currently offers the following qualifications as part of an apprenticeship programme: AAT Level 2 Certificate in Accounting AAT Level 3 Diploma in Accounting AAT Level 4 Professional Diploma in Accounting ICAEW Certificate in Finance, Accounting and Business CIMA Certificate in Business Accounting Eligibility Criteria Students must: Be employed in a relevant role for at least 30 hours per week Hold GCSE Maths and English Grade C or above Be aged and not hold a degree or be studying for any other qualification Have the right to live and work in the UK Employers must: Support the apprentice by providing time and support to complete their apprenticeship with on the job training and time off for studying for the relevant exams. How to apply The application process typically involves completion of the following: A student enrolment form with supporting identity documents and copies of GCSE certificates in English and Maths An Employer Health and Safety checklist and questionnaire Upon receipt of the application, we will arrange a sign up meeting with one of our advisers to complete any remaining paperwork and to agree the apprenticeship training plan, which outlines the course and exam timetable for the duration of the apprenticeship, which is typically months. An Individual Learner Agreement is signed by the employer, apprentice and First Intuition, outlining the respective responsibilities of each party and the agreed training plan. Progress is reviewed at quarterly intervals, with comments, and exam results reported to the employer. Both employer and apprentice are required to sign quarterly progress review forms. Exact requirements may vary between study centres as we work with different funding partners on a sub-contract basis. All centres are listed on the Government s Register of Training Organisations. 1 P age

2 Costs and funding Funding is awarded based on the age of the apprentice at the start. Top up fees are payable by the employer (variable by centre) for those aged 19 and over, as follows: Level 2 Fully funded Level 3 Fully funded Level 4 Fully funded All top up fees are subject to VAT and exclude exam and professional body registration fees which are payable separately. How it works Trainees attend classroom or live online courses and sit exams in accordance with the agreed training plan. We do not currently accept apprenticeships under a distance learning arrangement. monitors progress and reports to the employer at quarterly intervals. Upon completion of the final exam, trainees are awarded a Certificate of Achievement by their professional body and we submit this to complete the apprenticeship. Trainees may also be required to complete and submit an Employer Rights and Responsibilities workbook (Levels 2 and 3). Level 4 apprentices must also complete the Business Skills Diploma. Please note that this is not supported by our London centre. For more information or to request an application pack, please contact us: London Conway Mews, London, W1T 6AA Tel london@fi.co.uk Contact: Sarah Habgood Cambridge 35 Hills Road, Cambridge, CB2 1NT Tel cambridge@fi.co.uk Contact: Amy Forrest Chelmsford Aquila House, Chelmsford, CM1 1BN Tel chelmsford@fi.co.uk Contact: Kelley O Donovan Maidstone 89 King Street, Maidstone, ME14 1BG Tel maidstone@fi.co.uk Contact: Jill Fidock Reading 16 Forbury Road, Reading, RG1 1SB Tel reading@fi.co.uk Contact: Jo Dyson Please note that top up fees and qualifications offered may vary between study centres. In the event that a trainee does not complete the Apprenticeship, we may seek to recover additional costs to cover the value of training delivered, as a significant proportion of the funding is withheld until completion. 2 P age

3 New Apprenticeship Standards From May 2017 will be offering the following new apprenticeship standards: Assistant Accountant Apprenticeship (subject to approval by BIS) Professional Accountant Higher Apprenticeship These new standards have been developed over the last 12 months by leading employers taking part in the Trailblazer process. The new standards are designed to be more relevant to business, with employers having greater involvement in the learner journey. Under the new standards, apprentices are not strictly required to complete a relevant qualification, but we believe that most firms will want their trainees to gain one of the recognised accountancy qualifications whilst undertaking the apprenticeship. Consequently, will not be supporting the work based learning route. Apprentices are assessed via a two-part end point assessment : Synoptic assessment a case study style exam Reflective statement or discussion regarding work experience gained during the apprenticeship You can find out more about the new Standards in our separate fact sheets. Eligibility Criteria Broadly the same criteria apply as at present, except there is no upper age limit and anyone may apply regardless of academic history, in other words, graduates may apply. Employers are able to determine their own minimum entry requirements. We recommend a minimum of Grade A in GCSE Maths and English. Students must: Be employed in a relevant role for at least 30 hours per week Hold GCSE Maths and English Grade C or above Employers must: Support the apprentice by providing time to complete their apprenticeship by gaining the required knowledge, skills and behaviours as outlined in the standards. How to apply We are waiting for the Government to clarify what information is required at the outset, but anticipate similar application paperwork and a sign up visit to be undertaken at the outset in order to agree the learner journey. Costs and funding The Government is committed to funding 90% of the cost of training apprentices, up to the agreed funding cap as follows: Assistant Accountant 6,000 Professional Accountant 9,000 Additional incentives are available for employers taking on year olds. Current guidance is that this additional contribution will amount to 1,000 per apprentice and that the government will meet the full training cost for small employers with fewer than 50 employees. It is up to employers to negotiate the cost of the apprenticeship with their training provider. 3 P age

4 The apprenticeship levy Employers with an annual payroll total of 3m or more will be subject to the new Apprenticeship Levy which will be charged at 0.5% of the employer s gross pay total with effect from April Contributions will be paid into a levy fund via a new Digital Apprenticeship Service account (DAS) with funds being available for employers to spend on training apprentices. Amounts will be collected monthly as for PAYE and NI deductions, so the first funds will be available to spend from May A fixed annual allowance of 15,000 will be available for employers to offset against their levy payments (so the charge is only incurred on payroll cost in excess of 3m). This will be paid monthly, with any unused allowance being carried forward. The government will top up levy funds paid into the DAS account by 10% to increase the amount available for spend. Funds in the DAS are valid for a period of 18 months, with amounts being paid directly to training providers on a first in first out basis. Employers must: Register for the Digital Apprenticeship Service in order to manage their levy funds. Applications open in January Training Providers must: Be listed on the new Register of Apprenticeship Training Providers in order for levy funds to qualify as valid spend. Applications open in October 2016 and the first register will be published in February The levy fund cannot be used to pay wages or other costs associated with employing an apprentice funds can only be used for training costs incurred with a registered training provider. Employers may apply to join the Register if they offer internal training that meets the requirements of the apprenticeship standard. Illustration Levy Paying Employer with surplus Employer liable to an annual levy charge of 20,000, with 22,000 being accumulated in the DAS. Employer trains two apprentices at the agreed cap of 9,000, using 18,000 from the levy fund. 4,000 is carried forward but any amount not spent after 18 months is lost. If levy funds are insufficient to cover the cost of apprenticeship training, the government will contribute 90% of the additional cost of that training. Illustration Levy Paying Employer with shortfall Employer liable to an annual levy charge of 6,000, with 6,600 being accumulated in the DAS. Employer agrees to train an apprentice at the agreed cap of 9,000. The government pays 90% of the shortfall so the employer contribution is % of the funding is withheld until completion of the apprenticeship. More information can be found at nticeship-levy-how-it-will-work. 4 P age

5 Non-Levy Payers Smaller employers can still employ apprentices under the new standards and register for the DAS in order to search for an approved training provider. The price of the training is agreed with the training provider up to the agreed cap, but the government pays 90% of that cost directly to the training provider, with the employer contribution being 10%. For small employers with less than 50 employees employing an apprentice aged the cost of training will be fully funded. Advice and next steps Start planning ahead and prepare to register for the DAS in January You can use the Government s online tool to calculate your levy pot and estimate how much will be available for spending on apprenticeships. Levy funds can be used to fund any apprenticeship. Employers should seek to identify all areas of their business where apprentices may be employed, eg HR or IT. We will be issuing additional guidance in late 2016 after the new government releases. We believe we are ideally placed to deliver your apprenticeship training: We get to know our students as individuals and provide regular progress updates and feedback on trainees performance Tutors provide home/mobile phone numbers to students for out of hours study support All our tutors are qualified accountants with lots of teaching and management experience. They help relate exam based learning to real life experience, which will be helpful as trainees start building their evidence portfolio. We already work with a number of employers on apprenticeship programmes under the current frameworks, delivering successful business skills diploma modules. We look forward to working with you to build your own successful apprenticeship programme. Non levy payers should still consider employing new trainees under an apprenticeship, as the 10% employer contribution is likely to be substantially less than the list price of any exam training. Keep checking the following for the latest news and updates: P age

6 At a glance - key differences between old framework and new standard apprenticeships Eligibility Qualifications and exams Work experience Funding Role of employer Current Apprenticeship Frameworks (Sep 16 to Aug 17) Aged and not a degree-holder. Must achieve equivalent to GCSE grade C in maths and English. Must complete a recognised qualification (eg AAT, CFAB or CIMA) Gain relevant experience during apprenticeship, but no formal record required (other than for Level 4 Business Skills Diploma) Paid directly to training provider with top up fees payable by employer for those aged 19 or over Provide employment at least 30 hours per week and provide time for trainees to study towards their qualification, based on an agreed Training Plan New Apprenticeship Standards (May 17 onwards*) Open to anyone with GCSE Maths or English grade C or above None required, except for completion of a synoptic assessment as part of the end point assessment. However, will require apprentices to work towards one of our supported qualification in preparation for the synoptic assessment. Must record evidence of skills and experienced in a portfolio of evidence to be presented as part of final end point assessment Paid to training provider via the apprenticeship levy or directly by the government for non-levy payers, who must pay a contribution of 10% of the overall cost. Provide employment for at least 30 hours per week and provide time for trainees to prepare for the end point assessment, including facilitating gathering work based evidence of skills and behaviours. We anticipate offering apprenticeships under the new standards from May 2017, but expect most employers to introduce their new programmes from August/September 2017 with their new school leaver intakes, with current trainees completing apprenticeships under the current frameworks. Please note that levy funds cannot be used to fund any trainees who are part way through an existing apprenticeship. However, a trainee approaching completion of a Level 3 Apprenticeship could commence the new Professional Accountant apprenticeship any time from May 2017 under the new funding rules. 6 P age