Employer Apprentice Levy

Apprentice Levy

Note regarding Apprentice Levy.

If you determine that the employer's pay bill will be £3,000,000.00+ or you have 'connect' companies which bring the figure to this level, you will need to tick the 'Apply Apprentice Levy'.
CalcPay will determine the Levy due from the NIC Pay.
The amount due will be shown on the 'Reports/P32' reports.

You will need to send in a 'RTI/EPS' EVERY month.

The 'Apprentice Levy Allowance is 15,000.00 for 17_18 year. If you have 'connected' companies then you can allocate the ONE allowance between them. Once you have chosen a figure you cannot change it during the year. The figure can be 0.00.

The Apprentice Levy % is 0.50% for 17_18 year

Further details:

https://www.gov.uk/guidance/pay-apprenticeship-levy

icaew.com article

https://www.gov.uk/hmrc-internal-manuals/apprenticeship-levy

Who Pays
The levy will be charged at a rate of 0.5% of an employer’s pay bill but there is an annual allowance of £15,000 to offset against this. So, in practical terms, subject to the connected companies and charities rules, only employers with annual pay bills greater than £3 million will pay the levy.

For the purposes of the levy, an employer’s pay bill is all of those employee earnings liable to Class 1 secondary National Insurance contributions (NICs)

Pay Bill figure should not include:

• earnings of employees under the age of 16
• earnings of employees not subject to UK NICs legislation
• any payment which is not considered earnings for NICs purposes or is officially disregarded, for example, pension payments which are not subject to NICs
• Benefits in kind that are liable to Class1A NICs.
• Payments to employees working abroad that are making employee only contributions.

The detail of the Pay Bill can be found in:

'Reports/Employee/EmployeePayAnalysis', the last column.

How do I report the apprenticeship levy?

Employers only need to report the apprenticeship levy to HMRC if they are likely to have a liability to pay it. This will be where their annual pay bill in the previous tax year that was liable to Class 1 secondary NICs was over £2.8 million, or they believe it will be over £3 million in the current year, or, for connected employers who allocate the allowance across their group and the allocation is such that the employer believes they are liable to pay the levy

The levy will be reported as part of the normal payroll process using the Employer Payment Summary (EPS)

Connected companies and charities    

The government has made an amendment to the Finance Bill 2016 to allow connected companies or charities to share the levy allowance between them,
The split of the allowance must be agreed at the beginning of the tax year and fixed for that year. You cannot change the allocation midyear.

Apprenticeship levy-Spec-Guidance Pack v1 6.docx

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