When you have to pay Apprenticeship Levy and how to report your payments
As an employer, you’ll have to pay Apprenticeship Levy each month from 6 April 2017 if you:
- have an annual pay bill of more than £3 million
- are connected to other companies or charities for Employment Allowance which in total have an annual pay bill of more than £3 million
Your annual pay bill is all payments to employees that are subject to employer Class 1 secondary National Insurance contributions (NICs) such as wages, bonuses and commissions. You must include payments to:
- all employees earning below the Lower Earnings Limit and the Secondary Threshold
- employees under the age of 21
- apprentices under the age of 25
Your pay bill doesn’t include:
- earnings of employees under the age of 16
- earnings of employees who aren’t subject to UK NICs legislation
- earnings on which Class 1A NICs are payable, such as benefits in kind
Technical information with worked examples is available in the Apprenticeship Levy manual for HMRC staff.
HM Revenue & Customs (2016), Pay Apprenticeship Levy. Available at: https://www.gov.uk/guidance/pay-apprenticeship-levy?utm_source=HMRCLinkedIn&utm_medium=OwnedLinkedIn.