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4787. Apprenticeship Levy - How to set up and e-file it?
From 6 April 2017, apprenticeship levy will be payable each month for all employers, if their annual pay bill exceeds 3 million. Levy will be charged at a rate of 0.5% of the employer's annual pay bill. All employers will have an annual levy allowance of 15,000 to offset against their levy liability. However, connected companies or charities will only have single 15,000 levy allowance to share between them. Click here for more information about apprenticeship levy.

The steps below will explain how you can set up apprenticeship levy allowance and e-file your levy liability to HMRC.

Step 1 : Setup Apprenticeship Levy allowance

You will need to first enter your annual apprenticeship levy allowance (maximum 15,000) in the Chart of Setup section. Employers with multiple PAYE schemes should enter the split of the allowance amount set for your PAYE scheme.

To set up the apprenticeship levy allowance for your PAYE scheme, follow the roadmap below.

Road Map :
Employer / Setup -> Chart of Setup -> Apprenticeship Levy Setup -> Edit -> Enter Apprenticeship Levy Allowance -> Save

Step 2 : Report Apprenticeship Levy to HMRC

Employers who have the liability to pay apprenticeship levy should report it to HMRC by e-filing an EPS. Our system will calculate your apprenticeship levy payable for each tax month after offsetting the cumulative monthly levy allowance against the cumulative monthly levy liability. You can refer the 'Apprenticeship Levy Report' to check the levy payable amount per tax month.

To e-file the levy liability to HMRC, follow the road map below.

Road map :
E-Filing RTI -> E-file FPS, EPS, NVR, YTD FPS -> EPS (Employer Payment Summary) -> Making a Reclaim -> Enter Apprenticeship Levy Current Period Value -> Continue

Note: To enter Apprenticeship Levy Current Period Value while e-filing EPS, refer the Apprenticeship Levy report. Go to, Reports -> Payslip, Payroll & PAYE - View / Print -> Apprenticeship Levy report

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