The Apprenticeship Levy is payable by employers with an annual pay bill in excess of £3,000,000 and is used to fund new apprenticeships.
NB: Please refer to HMRC's guidance (particularly if you are part of a group).
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.
This includes payments to:
However, does not include earnings:
Employers are given an Apprenticeship Levy allowance of £15,000 each year.
This allowance reduces the amount of Apprenticeship Levy an employer has to pay by £15,000 across the year. This therefore means that only employers with an annual pay bill of more than £3 million will pay the levy.
Apprenticeship Levy is charged at 0.5% of your annual pay bill.
Other Key Points:
The Apprenticeship Levy is reported each month via your Employer Payment Summary (EPS). There is no requirement to report Apprenticeship Levy on your EPS if you have not had to pay it in the current tax year.
You must report the following each month to HMRC via an Employer Payment Summary (EPS):
BrightPay will automatically calculate the amount of Apprenticeship Levy due each tax period by calculating 0.5% of the pay bill less the year to date Apprenticeship Levy Allowance. This amount will be reflected in the HMRC Payments utility and will be reported on the Employer Payment Summary (EPS).
Please note: you don’t need to report Apprenticeship Levy on your EPS if you haven’t had to pay it in the current tax year.
1) Select 'RTI' on the menu bar
2) Click New on the menu toolbar and select Employer Payment Summary (EPS):
3) Ensure the 'Apprenticeship Levy' marker is ticked
4) Select the applicable Tax period from the drop down menu
5) Click 'OK' and submit to HMRC, when ready.
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