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

To split the apprenticeship levy allowance, you need to set the annual threshold and allowance to the amount that you're allocating to that company.

The Apprenticeship Levy (AL) threshold and allowance for a company is £3,000,000 and £15,000 respectively. If you have multiple companies within a group, the threshold and allowance can be split across the companies in the group. However, you must not exceed the £3,000,000 threshold or the £15,000 allowance in total.

For example, you may need to split the allowance and threshold equally between two companies in a group. In this case you must set the annual allowance to £7,500.00 and the annual threshold to £1,500,000.00.

To update your AL 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 AL for this company. You must log into any other company involved in the split and repeat the steps above.

Split changed during the tax year

If you change how the AL is 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 the AL settings for a company and you're certain they're correct, follow the steps below:

1. Check that your Process Date is set 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 guide.
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.

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