The apprenticeship levy calculation
Apprenticeship levy is charged at a rate of 0.5% of an employer's total pay bill. This will be added to the PAYE payment to the HMRC, however you can offset the cost as employers are given an allowance of £1,500 (Tax year 2022/23).
This means that the company will only have to pay contributions if the total pay bill exceeds £3 million per tax year.
There are a few points to note about the Apprenticeship Levy Allowance
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You get the allowance over the corporate group.
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It is calculated on a cumulative basis.
Where several employers are connected as a group, they will only be able to use a total levy allowance of £15,000, divided across the group.
HMRC will use the same criteria for connected companies and charities as they currently employ for Employment Allowance.
You can get more information on the GOV.UK Website
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/308734/connected-companies.pdf
If you are part of a group of connected employers, you must decide what proportion of the levy allowance each employer in the group will be entitled to. You must make this decision at the beginning of the tax year and is fixed for that tax year. Each employer in the group will then calculate what they have to pay with only their portion of the levy allowance.
You may find that you have to pay the apprenticeship levy in a single month, and then get the money back in the following month. For example: if you pay annual bonuses.
You can get more information from GOV.UK
https://www.gov.uk/guidance/pay-apprenticeship-levy