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UK, remember your settings and improve government services. We also use cookies set by other sites to help us deliver content from their services. You can change your cookie settings at any time. Find out when you have to pay Apprenticeship Levy and how to work out and report your payments.
Apprenticeship Levy is an amount paid at a rate of 0. The rules for connected companies are the same for Apprenticeship Levy and Employment Allowance. 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. Use a best estimate of all earnings that are subject to Class 1 secondary National Insurance contributions to check if you need to pay the Apprenticeship Levy.
If you start or stop being an employer part way through the tax year you can use your full annual Apprenticeship Levy allowance against the amount of the levy that you owe. You cannot change your share of the allowance during the tax year. You must continue to apply the levy allowance that was divided at the beginning of the tax year if, part way through the year:.
You can decide how you divided your levy allowance across your connected companies or charities at the start of the next tax year. You cannot change where the allowance has been divided across connected companies or charities at the end of the tax year. This can be done to offset any unused allowance against another of your schemes. Public bodies excluding charities each get a full Apprenticeship Levy allowance as they are not considered to be connected companies. Public bodies which are charities must follow the rules for connected charities.
Apprenticeship Levy is charged at 0. Subtract your levy allowance for the year to date from 0. This figure is your allowance for the first month you report the levy. Any unused allowance can be carried forward into the next month within the same tax year.
You must report this at the start of the tax year if:. You must keep records of any information you have used to work out your levy payment for at least 3 years after the tax year which they relate to. This is because the public sector employer will be liable to pay the Class 1 National Insurance contributions for workers engaged through such intermediaries from April These changes do not apply for services provided through intermediaries such as a personal service company to clients in the private sector.
As a result, the joint venture would not be connected to any other companies. For voluntary-aided schools, foundation schools, free schools and academies, the governing body is the employer.
For other maintained schools, the local authority is the employer. The employer for faith schools will be the local authority if the school is voluntary-controlled, otherwise it will be the governing body.
Guidance on who needs to pay the levy, how to work out what you owe and how to use the levy allowance has been updated. The section about 'how to allocate your allowance' has been updated. Additional information added to explain how to apply the Apprenticeship Levy in specific sectors. To help us improve GOV. It will take only 2 minutes to fill in. Cookies on GOV. UK We use some essential cookies to make this website work.
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Print this page. Who needs to pay Apprenticeship Levy Apprenticeship Levy is an amount paid at a rate of 0. Related content How to register and use the apprenticeship service as an employer Payments for hiring a young apprentice How to take on an apprentice Apprenticeship agreement: template Apprenticeship funding.
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