If you want to check the Apprenticeship Levy calculated in UK Payroll, you can use your year-to-date pay bill and Levy allowance to verify the amount.
Apprenticeship Levy is calculated at 0.5% of your pay bill, with an annual Levy allowance of up to £15,000.
The calculation is cumulative throughout the tax year:
- Year-to-date pay bill × 0.5% – year-to-date Levy allowance – Levy already paid = Levy due
For example, in month 1:
- Year-to-date pay bill: £260,000
- Levy calculation: £260,000 × 0.5% = £1,300
- Year-to-date Levy allowance: £15,000 ÷ 12 = £1,250
- Levy due: £1,300 – £1,250 = £50
For following months, use the total pay bill and allowance for the tax year to date.
For example, in month 3:
- Year-to-date pay bill: £780,000
- Levy calculation: £780,000 × 0.5% = £3,900
- Year-to-date Levy allowance: £1,250 × 3 = £3,750
- Levy due: £3,900 – £3,750 = £150
Remember that UK Payroll calculates the Levy on a year-to-date basis. Any unused allowance can carry forward to the next month within the same tax year.
If your company shares the £15,000 allowance with other companies or charities, use the allowance allocated to your company when checking the calculation.