ALM08400 - Apprenticeship Levy Allowance: levy allowance if you are an employer for part of the year
Part 6 of the 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 拢15,000 allowance against their levy liability for the part of the tax year that they operate.
Example
Company F starts up in August. It believes its annual pay bill for that tax year will be over 拢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 拢15,000, pro-rated over the 12 months of the tax year. Therefore Company F鈥檚 pro-rated levy allowance for August will be 拢6,250 (拢1,250 x 5).