This may be straightforward enough – however, the mechanics of how the Levy operates in practice are more complex. The Levy is applicable to companies with an annual payroll bill of over £3 million – for such companies, the Levy is calculated each month at 0.5 per cent of their gross NIC-able pay bill for the year-to-date. This is offset against any Apprenticeship Levy allowance that the company is due. Each company – or, if the company is part of a group, group of companies – is entitled to an annual £15000 Levy allowance from government. This allowance operates on a cumulative basis throughout the tax year and a group of companies can decide how it shares the allowance out across the group.
At Dataplan, our payroll software ensures that Levy calculations are made in strict accordance with HMRC specifications, guaranteeing figures that are accurate to the penny. A forthcoming enhancement to our software will ensure that the Levy figure is included within each period’s batch of payroll reports, giving our customers their Levy information with unbeatable efficiency. Running alongside this – our friendly team is just a phone call away, to offer you help and guidance in making sense of the Levy, underpinned by our specialist knowledge of the relevant legislation.
The Dataplan way really is the best way when it comes to Apprenticeship Levy and – indeed – when adapting to a full range of legislative requirements.