How much does a training contract actually cost?

How much does a training contract actually cost?

I have heard figures such as £100,000 over 3 years but that includes things such as wages/benefits aswell etc.

The distance learning course on BPP says it costs for ICAEW

Course fees

To qualify first time including all materials the course fee is £7,950 + VAT.

link

But when accounting firms tend to talk about wages they say they are low because of the costs of the training but it seems to me from the above they are exaggerating it to keep wages down for new starters?

Reply 1

sg231

training contracts:
first year: 26k (london), second year: 28k, third year: 30k (ish). = 84k.
training (inc VAT) = 9.4k
total: 93.4k. plus (say) 2/4k for the allocation of recruitment/internal training... and theres you're 100k!
bare in mind:
1) this is based on london (regional starters get 22/23k)
2) it doesnt include tax - take home pay is therefore less!
3) once you qualify you double your starting salary.

starting salaries cant be higher because the firm knows people fail exams/drop out...

Reply 2

leederick

Most firms offer better support than distance learning and leaving you to it. It depends on where and who with. I'd say the typical package consists of:

* Paid day release to study for and sit the exams - which can be a fair number of days when you're being paid but not doing proper work for the firm.
* Reimbursing travel expenses, if you're not close to a tuition centre.
* Paid tuition in terms of both courses, and revision courses, as well as all the books, CDs, notes and other kit. Much more support than the actual distance learning package.
* Exam fees.

You can do the sums yourself, but for all that I think we're easily talking at least 20-30k. And probably much higher.

Reply 3

uthinkilltellu

Also factor in retake fees.

Reply 4

Kemik

It completely depends on the qualification and company.

E.g. a ICAS + CTA qualification with KPMG in Tax (going to their tax school) will cost much more than an ACCA qualification in Audit. One gets a dual qualification, sends you to a specialised college and pays for your rent while the other gives you some time off work to study.

I've got to agree though. Starting wages for graduates are rubbish, especially in the North. I've seen industry jobs offering £27,000 (compared to £20,000 from big four) with training for CIMA.

Reply 5

Ziri

Bump

I'm about to interview for one of the big 4 and believe that I already hold an exemption for the business law exam. I'm just wondering, does anyone know the cost of the course and exam to the company and how much, if anything, your salary increases upon passing a course?