The person must pay the apprenticeship levy mentioned in paragraph (1) at the same time as the amount of tax and any earnings-related contributions due and in accordance with F3Chapter 1 of Part 4 of these Regulations (payment, returns and information).

In this regulation, “earnings-related contributions” means any contributions other than Class 1A and 1B contributions payable under the Contributions and Benefits Act in respect of earnings paid to or for the benefit of an earner in respect of employed earners employment.

A Real Time Information employer must inform HMRC of their apprenticeship levy liability after deducting any amount of levy allowance to which they are entitled for the tax month from it.

The information must be given in a return.

The return mentioned under paragraph (4) must be sent within 14 days after the end of the tax month.

This regulation applies in addition to the provisions set out in regulation 67F (additional information about payments).

This regulation applies where the monthly levy allowance falls to be calculated by a person.

Subject to regulations 147F and 147G, the monthly levy allowance is an amount equal to—

Subject to regulations 147F and 147G, the monthly cumulative levy allowance is an amount equal to the monthly levy allowance aggregated in accordance with the tax month within the tax year as shown in the table below.

This regulation applies where a person has more than one employer’s PAYE reference in respect of its employees.

The person may elect to apportion their annual entitlement of levy allowance amongst the employer’s PAYE references mentioned in paragraph (1) in accordance with the proportions they choose.

The monthly levy allowance for each employer’s PAYE reference is an amount equal to one twelfth of the annual apportioned entitlement for that reference.

The person must notify HM Revenue and Customs of the election mentioned in paragraph (2) with their first return of the apprenticeship levy.

The relevant members may elect to apportion their share of levy allowance amongst their respective employer’s PAYE references in accordance with the proportions they choose.

Multiply the amount of the monthly pay bill by 0.5%.

Deduct the monthly levy allowance for the first month as mentioned in Table 1 from the amount obtained from step 1.

If the resulting amount is positive, that amount is the apprenticeship levy payable for the first month of the tax year.

If the resulting amount is negative or zero, there will be no apprenticeship levy payable for the first month of the tax year.

A person must calculate the amount of apprenticeship levy for any month following the first month of the tax year (the relevant month) in accordance with the following steps.

Determine the cumulative amount of the monthly pay bill for the relevant months of the tax year.

Multiply the amount obtained from step 1 by 0.5%.

Determine the amount of the monthly cumulative levy allowance for the relevant month in accordance with Table 1.

Deduct the amount obtained from step 3 from the amount obtained from step 2.

If the resulting amount is negative, that amount is to be treated as zero for the purpose of the calculation mentioned in step 6.

If the resulting amount is a positive amount, that amount is to be used in the calculation mentioned in step 6.

Determine the amount of the cumulative apprenticeship levy paid up to the month preceding the relevant month and reduce that amount by any credit gained in the preceding month.

Deduct the amount obtained from step 5 from the amount obtained from step 4.

If the resulting amount is a positive amount, that amount is the apprenticeship levy due to be paid for the relevant month.

If the resulting amount is negative, that amount is the credit gained in the relevant month.

In this regulation, “credit” means any amount which is negative which can be used by a person to reduce the combined amount in the relevant month.

This regulation applies where a person has overpaid apprenticeship levy in a tax year.

The person must set off any overpaid apprenticeship levy against any amount which that person is liable to pay under these Regulations before making a claim to HMRC for a refund of the overpaid levy.

This regulation applies to persons specified in certificates in force under section 120(4) of the Social Security Contributions and Benefits Act 1992 (employment at sea: continental shelf operations).

The person referred to paragraph (2) is a UKCS continental shelf workers certificate holder who has obligations under regulation 114B of the SSC Regulations (UKCS continental shelf workers certificate holder: obligations and responsibilities) to make deductions, returns and repayments as are required by a secondary contributor.

In this regulation a UKCS continental shelf workers certificate holder means a holder of a certificate issued under regulation 114A of the SSC Regulations (application for certificate).

HMRC may assess the amount of apprenticeship levy which to the best of their judgement is due, and serve notice of their assessment on the employer.

Section 30A of F4TMA (assessing procedure) applies in relation to an assessment under this regulation as it applies in relation to an assessment to income tax.

Any amount of apprenticeship levy which is payable by virtue of an assessment made under this regulation shall be payable on the day following the end of the period of 30 days beginning with the day on which the notice of assessment is served.

Where an amount of apprenticeship levy has been repaid to any person which ought not to have been repaid to that person, that amount may be assessed and recovered as if it were unpaid apprenticeship levy.

An assessment under this regulation shall not be out of time under section 108 of the Finance Act 2016 (time limits for assessment) if it is made before the end of the year of assessment following that in which the amount assessed was repaid.

In this regulation any reference to an amount repaid includes a reference to an amount allowed by way of a set-off.

An employer must keep and preserve for not less than three years after the end of the tax year to which they relate all apprenticeship levy records which are not required to be sent to HMRC under regulation 147D.

The duty under paragraph (1) to preserve apprenticeship levy records may be discharged by preserving them in any form or by any means.

In this regulation, “apprenticeship levy records” means documents relating to the calculation of the amount of apprenticeship levy payable by the employer.