If you're part of a group of connected companies, with separate data for each company, you can split the apprenticeship levy across them.

To split the apprenticeship levy allowance, use the Split Apprenticeship Levy with another company option.

The Apprenticeship Levy threshold and allowance for a company is £3,000,000 and £15,000 respectively.

If you have multiple companies within a group, you can split the threshold and allowance across the companies in the group. Don't exceed the £3,000,000 threshold or the £15,000 allowance in total. ▼ View an example.

Configure your split

Use the Split Apprenticeship Levy option in the steps below to configure your split in each affected company.

If you don't use this option and you edit the actual legislation values, your software replaces them with the default values when you install a software update. When you use the split option, your software retains your changes when you install an update.

To update your Apprenticeship Levy settings:

1. Click Payroll then Change Process Date.
2. Enter the first date in the tax year you'd like to set up, then click OK.
3. Click Company then click Legislation.
4. Click the NI tab.
5. Click Edit next to Apprenticeship Levy Settings.
6. Select the Split Apprenticeship Levy with another company check box.
7. Enter the required values in This Company's Allowance and This Company's Threshold.
8. Click OK, click OK.

You've now split the Apprenticeship Levy for this company. Log into any other company involved in the split and repeat the steps above.

Split changed during the tax year

If you change the split in a company during the tax year, you need to recalculate the AL due in each tax month of the whole tax year.

After you've updated these settings for a company and you're certain they're correct, follow the steps below:

1. Check that your Process Date is within the tax year you need to recalculate.
2. Re-run the P32, one month at a time starting from month 1.
    TIP: For help to re-run the P32, visit our print and check the P32 Employer Payment Record article.
3. Your new P32s include the correct AL liability for each month. To inform HMRC of any change to the year to date AL value, submit an EPS to adjust your payment to HMRC.