The apprenticeship levy is an amount calculated at a rate of 0.5% of an employer’s annual NIable pay bill. As an employer, you need to report the apprenticeship levy through the EPS.
PeopleXD automatically calculates the year to date apprenticeship levy owed and reports this on the monthly EPS.
We’ve compiled a list of reasons why the apprenticeship levy figures can appear incorrectly and how to resolve them.
Company allowance
The company allowance might not be reflected in the EPS figure. This allowance reduces the apprenticeship levy by £15,000 over the year, providing relief of £1,250 each month.
To review this, follow the steps below.
Click Settings then under UK Tax Rates, click General.
Click Other.
From the Select Detail drop-down menu, select Apprenticeship Levy.
From the Select drop-down menu, select Company Parameters.
From the Year drop-down menu, select the relevant year.
Highlight the relevant company, then check the Apprentice Levy Threshold column.
Click Save.
Discrepancy in figures
The apprenticeship levy figure on the observation report may differ from the figure shown on the EPS file.
This discrepancy occurs because the EPS figure reflects a company-level calculation, whereas the observation report is based on individual employees.
To verify the EPS value, take the year to date NIable pay and calculate the apprenticeship levy percentage from that amount.
Missing figure on EPS screen
The Apprenticeship Levy figure is not accurately reflecting the amount for the month you selected on the EPS screen.
The EPS shows Year-To-Date (YTD) cumulative data and displays the most recent figures for the payroll company after you have completed an update. It does not allow you to generate figures for a previous month that you may have forgotten to report.
Additionally, if you process any weekly payrolls for the following month before running your EPS, those figures will also be included in the EPS, even though they don't pertain to the selected month.
NIable pay not included
The FPS NIable pay does not include amounts that fall under the Lower Earnings Limit (LEL).
While the EPS reports the total company NIable pay, the FPS excludes any NIable pay below the LEL. Thus, the EPS provides a complete company figure regardless of whether some employees earn below this threshold.