For the first month of the tax year divide your Apprenticeship Levy allowance by 12 and subtract this figure from 0.5% of your monthly pay bill.
For each month thereafter calculate your total payroll for the year to date and add up your monthly levy allowances for the year to date. Subtract this allowance from 0.5% of your total pay bill for the year to date the subtract the amount of the levy you’ve paid in the year to date.
Please note the figure of £3m includes any connected companies’ payrolls, so even if the production pay bill is less than £3m the you should find out if your company is owned by a group whose payroll as a whole exceeds the £3m.
You must report Apprenticeship Levy payments to HMRC from the start of the tax year if you either had a payroll of over £3m in the previous tax year or you think your annual payroll for the new tax year will be more than £3m.
If at any point in the tax year it becomes apparent your annual payroll will exceed £3m you must start reporting.
If you’ve started paying Apprenticeship Levy and it turns out your payroll will be less than £3m you’ll still need to continue reporting it until the end of the tax year.
Any information upon which the levy payment has been calculated must be recorded and kept for at least 3 years after the tax year which they relate to.