Why am I being charged Apprenticeship Levy?
Article ID
12119
Article Name
Why am I being charged Apprenticeship Levy?
Created Date
1st May 2019
Product
IRIS PAYE-Master, IRIS Payroll Business, IRIS Bureau Payroll, IRIS GP Payroll, IRIS Payroll Professional, Earnie, IRIS Earnie IQ
Problem
I have a charge for Apprenticeship Levy on my month end summary.
For frequently asked questions on the apprenticeship levy click here.
Resolution
Did you select the correct option when applying the Apprenticeship Levy Allowance during the year-end process?
If you have selected No Allowance you will start paying the apprenticeship levy immediately at a rate of 0.5% of the total pay bill for the month.
To review (and change, if necessary) your Apprenticeship Levy Allowance Option:
Payroll Business & Bureau Payroll
Go to Company> Company Details and alter the ‘Apprenticeship Levy Allowance’ field to the correct amount.
Once you have done this, you will need to perform month end processing for that month by going to HMRC> Month End Summary (P32)> Print Month End. Remember to click “Yes” to the month end processing prompt.
Earnie
Go to Company > Alter Company Options and alter the ‘Apprenticeship Levy Allowance’ field to the correct amount.
Once you have done this, you will need to perform month end processing for that month by going to Reports> Month End Summary. Remember to click “Yes” to the month end processing prompt.
Earnie IQ
Go to Company > Alter Company Options and alter the ‘Apprenticeship Levy Allowance’ field to the correct amount.
You can check the figures by going to Company > HMRC Details and then select the App. Levy Tab.
Once you have done this, you will need to perform month end processing for that month by going to Reports > Month End Summary. Remember to click “Yes” to the month end processing prompt.
GP Payroll
Go to Setup Options> 12 – Tax/NI Parameters and set the correct amount in the ‘Levy Allowance’ field.
PAYE-Master
• Restore a pre finalised backup and go to Company> Details> Sundry and alter the ‘Apprenticeship Levy Allowance’ field to the correct amount. When you finalise the payroll the Apprenticeship Levy will be corrected.
Reporting to HMRC
The Apprenticeship Levy Details are sent to HMRC via the Employer Payment Summary (EPS). If you have altered Apprenticeship Levy Allowance, as detailed above, you will need to resend your EPS. Remember, the EPS sends year to date values on each submission, as such you will not need to resend individual months, just send your most up to date month after you have taken the steps above to correct the allowance.
For frequently asked questions on the apprenticeship levy click here.
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