Important to Know

• The total Apprenticeship Levy allowance across all PAYE references must not exceed £15,000 (for most employers).
• If your business is part of a group of connected companies or charities, you must decide how to share this allowance and update each PAYE reference in BrightPay accordingly.

Step 1: Enable Apprenticeship Levy for Each PAYE Reference

• In BrightPay, go to the HMRC section for the relevant employer.
• Under the Apprenticeship Levy section, click Enable and follow the on-screen steps.
• BrightPay will then automatically calculate the levy due for that PAYE reference.
• When you submit your Employer Payment Summary (EPS) to HMRC the Apprenticeship Levy amounts are included in these submissions.

Step 2: Adjust the Allowance (If Required)

• By default, the allowance is set at £15,000.
• If you’re part of a group, this allowance must be shared across all PAYE schemes. For example, with two PAYE references, you might split £7,500 each—or another split that suits your organisation.
• If you are unsure if this applies to you - we recommend that you contact HMRC for clarification and guidance.

Step 3: Check and Correct Discrepancies

• If figures don’t match across PAYE references or other payroll software, make sure the allowance has been entered correctly for each reference.
• If HMRC allows you to offset an overpayment or refund, you can record this in the Adjustment field under the Year to Date in the HMRC Section.  Both positive and negative amounts are accepted.

Step 4: Save and Review

• Once updates are made, click Save Changes.
• Your P30 and P32 Employer Payment Records will be updated automatically to show the correct levy amounts due to HMRC.

Step 5: Year-to-Date and Carry Overs

• To correct an earlier allocation, simply update the allowance for that PAYE reference and save— you may need to submit another EPS to HMRC to ensure your records are consistent.