📌Note: You will only pay the levy if you have a pay bill of £3 million or more.
If you are not connected to another company or charity, you will have an apprenticeship levy allowance of £15,000 each year. The allowance reduces the amount of apprenticeship levy you pay by £15,000 across the year.
🤓Tip: If you start or stop being an employer partway through the tax year, you can use your full annual apprenticeship levy allowance against the amount of the levy that you owe.
Apprenticeship levy allowance
Click Payroll, and then click Parameters.
Click Apprentice Levy.
Your allowance is listed in the annual allowance column.
Pay bill figure
Your annual pay bill is all payments to employees that are subject to employer Class 1 secondary national insurance contributions, such as wages, bonuses and commissions.
📌Note: You will need to manually exclude employees on NI letter X, the report doesn't take into account pay elements that are not selected for NICers.
Click Payroll, and then click Reports.
Click Payroll Reports.
Click the + icon to expand Transaction, then General.
Click Pay Details by Pay Element, then click Print Preview.
Apprentice levy calculation
📌Note: You cannot carry over any unused allowance into the next tax year.
The first month of the tax year
Divide your Apprenticeship Levy allowance by 12.
Subtract this figure from 0.5% of your monthly pay bill.
Subsequent months
Calculate your total pay bill for the year to date.
Add up your monthly levy allowances for the year to date.
Subtract your levy allowance for the year to date from 0.5% of your total pay bill for the year to date.
Subtract the amount of the levy you’ve paid in the year to date.