The apprenticeship levy example calculation

Each month the cost of the apprenticeship levy will be:

(0.5% of total pay bill YTD) - ((company's annual levy allowance÷12) × month number) = Amount due to HMRC for apprenticeship levy.

Step 1: Find the employers pay bill. This is the Year to date figure

How is the employer’s pay bill calculated?

For the purposes of the levy, an employer’s pay bill is all of those employee earnings liable to Class 1 secondary National Insurance contributions (NICs), this also includes all earnings below the Secondary Threshold (ST).

Pay bill also includes the earnings of employees under the age of 21 and apprentices under the age of 25. This is because an employer is still liable to pay Class 1 secondary NICs on those earnings, but at a rate of 0%, (which means it may seem to the employer as if they do not have NICs liability for these employees).

Pay bill does not include any earnings where an employer is not liable to pay Class 1 secondary NICs.

Step 2: Multiply the figure from Step one by 0.5%.

Step 3: Calculate the annual allowance and divide by 12.

£15,000 / 12 = £1,250

Step 4: Multiply the figure from step 3 by the tax month you are calculating. Example: If you are calculating August (Month 5) £1,250 x 5 = £6,250.

Step 5: Take the allowance calculated in 4 from the Year to date figure in Step 2.

Step 6: Take away any allowance already paid Year to date.

You can get more information from GOV.UK
https://www.gov.uk/guidance/pay-apprenticeship-levy