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HMRC internal manual

Apprenticeship Levy Manual

Apprenticeship Levy Allowance: levy allowance if you are an employer for part of the year

Part 6 Finance Act 2016

Income Tax (Pay As You Earn) Regulations 2003

If an employer starts-up during the tax year or goes into liquidation during the tax year, they can still offset the full £15,000 allowance against their levy liability for the part of the tax year that they operate.


Company F starts up in August. It believes its annual pay bill for that tax year will be over £3 million, so it must begin reporting and paying the levy when it starts up in August. Even though Company F started up mid-way through the tax year, it is still entitled to the full annual levy allowance of £15,000, pro-rated over the 12 months of the tax year. Therefore Company F’s pro-rated levy allowance for August will be £6,250 (£1,250 x 5).