Allocating your Apprenticeship Levy allowance
08 August 2018
Guidance on how to allocate your apprenticeship levy allowance has been updated.
How to allocate your allowance
Your Apprenticeship Levy allowance of £15,000 can be allocated between:
- All your PAYE schemes
- Your connected companies or charities
You can decide how to split the allowance between your PAYE schemes or with your connected companies or charities. You’ll need to report how you’ve allocated your allowance the first time you have to pay Apprenticeship Levy.
You cannot change your share of the allowance during the tax year.
You must continue to apply the levy allowance that was allocated at the beginning of the tax year if, part way through the year:
- You become a connected employer (such as by merging with or acquiring another company)
- The structure of your group of connected companies or connected charities changes (such as by demerging with another company)
You can decide how you allocate your levy allowance across your connected companies or charities at the start of the next tax year.
Where the allowance has been allocated across connected companies or charities you cannot change the allocation of the allowance at the end of the tax year.
If you are an employer with multiple PAYE schemes and you do not use your full Apprenticeship Levy allowance during the year, you can change the allocation at the end of the tax year, to offset any unused allowance against another of your schemes.
Public bodies each get a full Apprenticeship Levy allowance as they are not considered to be connected companies.
NHS trusts and other health service bodies (such as Scottish Health Boards, Welsh Local Health Boards or Irish Health and Social Care Trusts) are considered to be companies and therefore have to follow the connected companies rules.
Public bodies which are charities must follow the rules for connected charities.
All guidance relating to ‘Pay Apprenticeship Levy’ can be found on GOV.UK.