Report how much you owe

Report how much you owe

From 6 April 2017, you’ll need to tell HMRC how much Apprenticeship Levy you owe each month:

  • from the start of the tax year if:
    • your annual pay bill (including any connected companies or charities) in the previous tax year was more than £3 million
    • you think your annual pay bill (including any connected companies or charities) for the tax year will be more than £3 million
  • if your annual pay bill (including any connected companies or charities) unexpectedly increases to more than £3 million – start reporting when this happens

If you’ve started paying Apprenticeship Levy, you’ll need to continue reporting it until the end of the tax year even if your annual pay bill turns out to be less than £3 million.

Connected companies or charities will each need to tell HMRC how much Apprenticeship Levy they owe.

Report your Apprenticeship Levy each month using your Employer Payment Summary (EPS) and include the following:

  • the amount of the annual Apprenticeship Levy allowance you’ve allocated to that PAYE scheme
  • the amount of Apprenticeship Levy you owe to date in the current tax year

You don’t need to report Apprenticeship Levy on your EPS if you haven’t had to pay it in the current tax year.

Record keeping

You must keep records of any information you have used to calculate your levy payment for at least 3 years after the tax year which they relate to.

Changes to your pay bill

Report any changes to the Apprenticeship Levy as a result of changes to your pay bill on your next EPS.

If you find errors in your total annual pay bill at the end of the tax year, you must submit an extra EPS with the correct Apprenticeship Levy for the full tax year and pay what you owe.

Employers with modified PAYE schemes

If you run a modified PAYE scheme you’ll need to account for NICs as usual. Use a best estimate of all earnings that are subject to Class 1 secondary NICsto check if you need to pay the Apprenticeship Levy. You’ll need to submit an EPS each month using these estimated figures.

At the end of the tax year, you’ll also need to:

  • check your estimated pay bill against the actual figures for the tax year
  • submit an additional EPS to correct any difference and pay any Apprenticeship Levy owed

Contains public sector information licensed under the Open Government Licence v3.0.