How to Enable Apprenticeship Levy
The Apprenticeship Levy is a levy on UK employers to fund new apprenticeships. An allowance of £15,000 per tax year is available to offset against your payments.
Qualification for the Apprenticeship Levy:
- Employers with an annual pay bill of more than £3 million are required to pay the Apprenticeship Levy at a rate of 0.5% of their total pay bill.
- Smaller employers can choose to contribute voluntarily to support apprenticeships.
From the home screen, click on the "Company" section in the left-side menu, and then click on the "Allowances" subsection.
You will see a box labeled "Apprenticeship Levy" with a button.
- If the button says "Stop," then Apprenticeship Levy is already enabled.
- If the button says "Enable," then Apprenticeship Levy is off. You can turn it on by clicking the button.
A popup will open:
- If you migrated from another software, please see below.
- Otherwise, simply click the "Enable" button.
If you have transferred your payroll to FreePayroll part way through a tax year, you will need to enable the Apprenticeship Levy allowance first by following the steps above. As Apprenticeship Levy is a cumulative calculation, you will also need to enter the Year to Date levy values prior to joining FreePayroll to ensure the remaining Levy due calculates correctly.
Pay Bill YTD
Under Pay bill YTD you will need to enter your Year to Date Pay bill for the year so far i.e. Please enter the total Pay bill (pay subject to Class 1 Secondary National Insurance) from April to the final month you are processing payroll with your current provider.
If you are unsure of the figures, your current/previous provider should be able to get this for you.
Levy due YTD
Under Levy due YTD, you will need to enter the Year to Date Levy you have paid for the year so far i.e. Please enter the total Levy already paid from April to the final month your are processing payroll with your current provider.
If you are unsure of the figures, you should be able to get this from your P32 report and/or your current/previous provider.
Qualification for the Apprenticeship Levy:
- Employers with an annual pay bill of more than £3 million are required to pay the Apprenticeship Levy at a rate of 0.5% of their total pay bill.
- Smaller employers can choose to contribute voluntarily to support apprenticeships.
From the home screen, click on the "Company" section in the left-side menu, and then click on the "Allowances" subsection.
You will see a box labeled "Apprenticeship Levy" with a button.
- If the button says "Stop," then Apprenticeship Levy is already enabled.
- If the button says "Enable," then Apprenticeship Levy is off. You can turn it on by clicking the button.
A popup will open:
- If you migrated from another software, please see below.
- Otherwise, simply click the "Enable" button.
Transferring to FreePayroll part way through a tax year
If you have transferred your payroll to FreePayroll part way through a tax year, you will need to enable the Apprenticeship Levy allowance first by following the steps above. As Apprenticeship Levy is a cumulative calculation, you will also need to enter the Year to Date levy values prior to joining FreePayroll to ensure the remaining Levy due calculates correctly.
Pay Bill YTD
Under Pay bill YTD you will need to enter your Year to Date Pay bill for the year so far i.e. Please enter the total Pay bill (pay subject to Class 1 Secondary National Insurance) from April to the final month you are processing payroll with your current provider.
If you are unsure of the figures, your current/previous provider should be able to get this for you.
Levy due YTD
Under Levy due YTD, you will need to enter the Year to Date Levy you have paid for the year so far i.e. Please enter the total Levy already paid from April to the final month your are processing payroll with your current provider.
If you are unsure of the figures, you should be able to get this from your P32 report and/or your current/previous provider.
Updated on: 03/05/2024
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