皇冠体育app

Purpose and scope

皇冠体育appse guidelines on 鈥楬elp with Apprenticeship Levy and Employment Allowance 鈥攃onnected entities鈥� are for all employers including:

• companies
• public bodies and their related entities
• charities

皇冠体育appy aim to help employers reduce the common errors HMRC sees. Following these guidelines will help employers report their Apprenticeship Levy liability and Employment Allowance claims correctly first time.

皇冠体育appy do not replace HMRC鈥檚 guidance in the Apprenticeship Levy manual or the National Insurance manual. 皇冠体育app guidelines are designed to complement it and should be read alongside the guidance.

皇冠体育appse guidelines provide help with the term 鈥榗onnected鈥� for the Apprenticeship Levy and Employment Allowance. 皇冠体育appy are not relevant for any other area of taxation legislation (for example Corporation Tax and VAT).

Description of terms

Throughout these guidelines we use the term 鈥榚ntities鈥�. This includes companies, charities, public bodies and their related organisations.

Where we use the term 鈥榩erson鈥�, it refers to an individual or entity as defined in the 鈥榙escription of terms鈥� section.

Background

皇冠体育appse guidelines focus on the connected entities rules for the Apprenticeship Levy and Employment Allowance. 皇冠体育appy do not provide a detailed analysis of the Apprenticeship Levy or Employment Allowance.

Apprenticeship Levy

皇冠体育app Apprenticeship Levy is payable monthly by employers. 皇冠体育app amount payable is 0.5% of the annual pay bill. A pay bill includes all earnings which are liable to Class 1 secondary National Insurance contributions.

Employers can offset a 拢15,000 Apprenticeship Levy allowance against their Apprenticeship Levy liability each year. Connected entities only have one 拢15,000 allowance to share between them. 皇冠体育apprefore, only employers (including their connected entities) with a pay bill of more than 拢3 million will have to pay the Apprenticeship Levy.

Employers must pay the Apprenticeship Levy even if they do not have any apprentices.

More detailed guidance on the Apprenticeship Levy can be found in Pay Apprenticeship Levy and HMRC鈥檚 Apprenticeship Levy manual.

Employment Allowance

Employment Allowance allows eligible employers to reduce their Class 1 secondary National Insurance contributions liability by up to 拢10,500. Previously, Employment Allowance was:

• 拢5,000 each year between 6 April 2022 and 5 April 2025
• 拢4,000 each year between 6 April 2020 and 5 April 2022

Public bodies (unless they are also a charity) cannot claim the Employment Allowance.

If you are connected to another entity, then only one (entity) can claim the Employment Allowance.

Prior to 6 April 2025, employers could only claim Employment Allowance if their Class 1 secondary National Insurance contributions liabilities were less than 拢100,000 in the previous tax year. All connected entities must be included when calculating the liability. If the liability was 拢100,000 or more, none of the entities could claim the Employment Allowance.

From 6 April 2025 the 拢100,000 eligibility threshold no longer applies.

More detailed guidance on the Employment Allowance can be found at Employment Allowance and HMRC鈥檚 National Insurance manual.

Multiple PAYE schemes

Employers with more than one PAYE scheme can share the Apprenticeship Levy allowance across the schemes in a way that suits them best. 皇冠体育appy must notify HMRC of the split with their first return of Apprenticeship Levy. This will usually be at the beginning of the tax year. You can find more information at Apprenticeship Levy Allowance: shared across PAYE schemes.

皇冠体育appse employers can only apply any available Employment Allowance against one PAYE scheme. 皇冠体育app employer must decide which PAYE scheme will claim the allowance. More information is provided at Employment Allowance: Employers with multiple PAYE schemes.