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Skills Development & B-BBEE

Optimising Your Skills Development Spend For B-BBEE

Skills Development is a priority element on the BBBEE Scorecard with 40% to be achieved to ensure your company does not drop a level.

Challenge

As Skills Development is expensive, most companies choose to rather spend their money on other elements of the BBBEE scorecard.

Often, when a company does make the budget available for training, they do not always have the capacity or the training expertise to train their staff properly, their staff properly.

Solution

We consult with companies on all aspects of Skills Development, for free. If the company currently has a B-BBEE consulting firm, we will work with them to give the best possible solutions for the company’s financial benefit as well as operational benefit.

We Will Help You Find the Best Solution For:

  • - Learnerships for employed learners

  • - Learnerships for unemployed learners

  • - Training for disabled learners

  • - Bursaries

  • - Academic & Technical training

  • - Compliance training,  

  • - Unaccredited training spends

After the first year, the Learner is offered one of two Career Paths. The Learner, with support of the staff, will decide if they would prefer to advance in a general administrative management direction or continue in the wholesale and retail operations

The general administrative management continues the learning with a Business Administration Learnership at NQF3 and a General Management Leadership at NQF5. These Learners would now be able to seek employment in a typical office or administrative environment. Learners that select the Wholesale and Retail direction continue their learning journey up to achieving a Wholesale & Retail manager Learnership at NQF Level 5. This should open one of the many opportunities in this industry.

Learnerships & TAX Rebates?

Learnerships: Can they be funded by TAX Rebates?

Yes, they can! Tax Rebates are there to fund your Learnerships. Capitalise on this investment – grow your business through learnerships – grow the economy through your success.

Learnerships are positive programmes that enhance the education and potential of your workforce.

In this article, we will give further details about tax rebates, specifically about learnerships.

How do Learnership Rebates work?

Companies can earn maximum Skills Development points if they spend the required amount of their annual payroll on training initiatives.

The Rebate is made up of two parts:

An Annual Allowance

  • This is available for each year of assessment in which the employee takes part in the learnership. (It is apportioned if the agreement was not in effect for the full year.)

  • You may claim your Annual Tax Rebate when:

  1. The employee has completed an NQF level.
  2. During the year of assessment, an employee has registered a learnership agreement with you, the employer.

  3. The agreement was entered, pursuant to a trade carried by the employer.

  4. The employer derived income from that trade.

  5. The Learnership Programme is registered with the relevant SETA.

A Completion Allowance

  • A once-off allowance, available in the year of assessment in which the employee successfully completes the registered learnership agreement. It’s claimed in full regardless of which month the learnership was completed. It is claimed in addition to the annual allowance, meaning that in the year of completion, the employer can claim both the annual allowance and the completion allowance.

  • You may claim your Completion Tax Rebate when:

  1. The employee has completed an NQF level.

  2. During the year of assessment, an employee has registered a learnership agreement with you, the employer.

  3. The agreement was entered pursuant to a trade carried by the employer.

  4. The employer derived income from that trade.

  5. The employee successfully completed the learnership during the year of assessment.

  6. At the time of registration, the employer who registered for the agreement must be the same employer upon completion of the agreement.

  7. An agreement cannot be altered and must be the same agreement from registration until completion of the programme. This is to say, employees who have registered multiple agreements must keep to the same respective agreements and cannot replace one with another.

  8. The completion allowance is granted once-off in addition to the annual allowance and is deductible in the year of assessment in which the employee successfully completes the learnership, provided that enough proof of completion is supplied to SARS.

Allowance Amounts – Annual Allowance