HMRC have updated guidance on how to allocate the apprenticeship levy allowance across multiple PAYE schemes and/or connected companies and charities.
Pay Apprenticeship Levy explains when the apprenticeship levy needs to be paid and how to report payments. The guidance has been updated at the section about ‘how to allocate your allowance’. The apprenticeship levy allowance of £15,000 can be allocated between:
- all PAYE schemes;
- connected companies or charities.
Employers can decide how to split the allowance between PAYE schemes or with connected companies or charities but need to report how the allowance has been allocated on the first payment occurrence. The allocation of the allowance cannot then be altered during the tax year even if part way through the year the employer becomes a connected employer or the structure of the group of connected companies or connected charities changes – the allowance can only be reallocated at the start of the next tax year. However, employers with multiple PAYE schemes who do not use the full apprenticeship levy allowance during the year can change the allocation at the end of the tax year to offset any unused allowance against another of their schemes.
If you run your own payroll scheme you can see HMRC guidance HERE
For further assistance and advice contact Paul in our payroll department
 Reproduced from croner-i