Apprentice Employment Status and ESFA Funding

Self-employment is a major non-compliance with the ESFA Funding Rules and has resulted in significant amounts of funding being clawed back from employers.

Over recent months, it has come to light that a small number of Thermal Insulation apprentices on the apprentice training programme have been self-employed rather than being PAYE employees.  All apprentice employers sign a contract between the Department for Education and TICA stating that the apprentice is employed before the programme commences.

It has been announced this week that the ESFA and HMRC are now sharing data to identify these issues at source.  This could have serious implications for employers who continue to try and flout the rules as it will create a “flag” for HMRC and ESFA to closely monitor and could eventually result in employers being barred from employing apprentices.

Please ensure that your apprentices have a Contract of Employment and are paid via your PAYE account for the duration of their apprentice training programme.

For further information please click here, and don’t forget you can access HR support through your TICA membership here.

If you have any further questions relating to this important area of apprenticeship funding, please contact the TICA team