If your annual pay bill exceeds £3 million, you need to pay 0.5% of it into the apprenticeship levy. You have an allowance of up to £15,000 that you can offset against this. To set this up in Paycircle, follow the steps below.
Click Settings then click Payroll Settings.
Under Employer Status, click Edit.
Select the relevant option:
£15,000: This is the default option. Select this if you need to allocate the full £15,000.
£0: Select this if you don't want to assign any amount of the apprenticeship levy to this company.
Another amount: If you're splitting the allowance between this company and a partner company, enter the allowance for this company.
If required, turn on the Add app levy year-to-date toggle then enter the details.
Click Save.
Who pays the apprenticeship levy?
By default, this feature is enabled for all companies in Paycircle. However, only companies exceeding the threshold are required to contribute.
Additionally, the apprenticeship levy only appears in payroll reports for companies that contribute. If the company doesn't exceed the threshold and therefore doesn't make payments, the apprenticeship levy won't appear on reports.
Send an EPS
Every time you process the payroll, an Employer Payment Summary (ESP) is sent to HMRC. This updates the apprenticeship levy due, and the final payroll of the month sends the total levy for all schemes.
Set up apprenticeship levy across a PAYE scheme
If you have multiple companies under the same PAYE scheme, you need to set them up in Paycircle with the same apprenticeship levy allowance.
If you need to add year-to-dates, you need to split this across the companies on the PAYE scheme. You can split them any way between the companies, as long as they total the correct amount.