Regulation 147I Calculation of monthly apprenticeship levy for subsequent months of the tax yearF1

Step 1

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

Step 2

Multiply the amount obtained from step 1 by 0.5%.

Step 3

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

Step 4

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.

Step 5

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.

Step 6

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.