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HMRC internal manual

Apprenticeship Levy Manual

Cessation and liquidation

Where an employer ceases to be an employer 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 were an employer.


Company G stops trading in December. It is not connected to any other company. It has been reporting and paying the levy since the start of the tax year. Even though Company G does not trade for the full tax year, it is still entitled to the full annual levy allowance of £15,000. In November (the month before Company G cease to trade), Company G’s pro-rated cumulative levy allowance will be £10,000 (8 x £1,250). However because Company G ceases to trade in December, levy allowance for December will be £15,000, not £11,250 (9 x £1,250).