Apprenticeship Levy reports

Hi there!

The Apprenticeship Levy is calculated using the total pay bill of a company, on a cumulative basis each tax month throughout the tax year. This is the method advised by HMRC. It is not calculated at site level. This is why it will only display on the P30 Report and within the P32 Screens. It cannot be displayed within Journals.

The Apprenticeship Levy is charged at 0.5% of a Company’s annual pay bill.

HMRC advise the following calculations.

For the first month of the tax year:

1. Divide your Apprenticeship Levy Allowance by 12.

2. Subtract this figure from 0.5% of your first month pay bill.

For each of the following months:

1. Calculate your total pay bill for the year to date.

2. Add up your monthly Levy Allowances for the year to date.

3. Subtract your Levy Allowance for the year to date from 0.5% of your total pay bill for the year to date.

4. Subtract the amount of the Levy you’ve paid in the year to date.

If you begin paying the Levy part way through the tax year, you’ll need to calculate how much of your annual allowance has been accumulated in the current year. Divide your full annual allowance by 12 and multiply by the number of months since the start of the tax year. This figure is your allowance for the first month you report the levy.

Any unused Levy Allowance can be carried forward into the next month within the same tax year.

If a customer wishes to split the Apprenticeship Levy cost between sites, they will need to do this manually.

I hope that helps! Let me know if you need any further information!

Best,

Louise

Fourth