Next steps — further questions, feedback, legislation and guidance (part 5)
Updated 25 June 2026
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This publication is available at https://www.gov.uk/government/publications/help-with-the-apprenticeship-levy-and-employment-allowance-connected-entities-gfc10/next-steps-further-questions-feedback-legislation-and-guidance-part-5
What to do if you have made a mistake
It is anticipated employers will use these guidelines to determine if they are connected to other entities. This will help them calculate how much Apprenticeship Levy they should report and if they can claim the Employment Allowance.
Employers should correct any errors identified following the use of these guidelines. This includes correcting errors in the current and past years.
Where customers fail to meet their obligations, they may be subject to penalties, interest or a combination of both.
If you think you may have failed to meet your obligations, read the HMRC compliance factsheets on penalties to find out about:
- penalties HMRC could use
- when these penalties may apply
Interest will be charged from the date the original payment was due until the date it is actually paid.
Apprenticeship Levy errors
You need to make an amendment to your Real Time Information (RTI) records if you have not correctly reported the Apprenticeship Levy.
To correct a mistake in the current tax year, send an Employment Payment Summary (EPS) with the correct year-to-date figures. You should do this in the next pay period.
For previous tax years, send an EPS with the correct year-to-date figures for the tax year where you made the mistake. You should do this as a Month 12 amendment.
You can use your own payroll software to do this or use HMRC’s Basic PAYE Tool to make the appropriate EPS amendments.
If you submit an amended EPS, it will overwrite the last amounts that were submitted. This new submission will not be added to the original amount. Therefore, make sure the amended EPS includes the full amount of Apprenticeship Levy, as well as any other cumulative amounts. This includes Employment Allowance, Statutory Sick Pay and Statutory Maternity Pay.
The ‘further questions’ section has details on how to contact HMRC if you require further assistance.
Employment Allowance errors
If you identify any ineligible Employment Allowance claims, then you will need to amend your Real Time Information (RTI) records.
To correct a mistake in the current tax year, send an Employment Payment Summary (EPS) with the correct year-to-date figures. You should do this in the next pay period.
For previous tax years, send an EPS for each year with the correct year-to-date figures for the tax year where you made the mistake. You should do this as a Month 12 amendment.
If you submit an amended EPS, it will overwrite the last amounts that were submitted. This new submission will not be added to the original amount. Therefore, make sure the amended EPS includes the full amount of any Employment Allowance claim, as well as any other cumulative amounts. This includes Apprenticeship Levy, Statutory Sick Pay, and Statutory Maternity Pay. You can use your own payroll software to do this or use HMRC’s Basic PAYE Tool to make the appropriate EPS amendments.
The ‘further questions’ section has details on how to contact HMRC if you require further assistance.
Making a payment
Once you have made all EPS amendments, you should check your PAYE account to check if you have anything else to pay. If your account is in credit, we will use any overpayments to clear any amounts due following the EPS amendments.
You need to use a 17-digit reference when making payment. This is your 13-digit Accounts Office reference (without any spaces) followed by 4 digits. These 4 digits relates to the tax year, then the tax month the payment should be allocated to. For example, a company with Accounts Office reference 123PA123456782512 for payments relating to March 2025. There is further help on reference numbers for early and late payments. This will ensure that any payment is allocated correctly.
The ‘further questions’ section has details on how to contact HMRC if you require further assistance.
Further questions
If you have any questions or comments please email ccgguidelinesforcompliance@hmrc.gov.uk.
Please include the Guidelines for Compliance reference number (GfC10) in the subject line. If you have a Customer Compliance Manager (CCM) then copy them into the email.
Sending information by email carries certain risks. HMRC will assume that by sending information by email you understand and accept these risks.
Legislation and guidance
The most relevant legislation is:
The Income Tax (Pay As You Earn) (Amendment) Regulations 2017
Sections 1-8 National Insurance Contributions Act 2014
Schedule 1 National Insurance Contributions Act 2014
Section 5 Small Charitable Donations Act 2012
The main sources of available guidance include: