PAYE56125 | Employer returns: apprenticeship levy: excess apprenticeship allowance at year end

Customers cannot carry forward any excess annual levy allowance which they have at the end of the tax year into the next tax year: any excess will be lost. However, the employer can move excess levy allowance which they have at the end of the year to another of their PAYE schemes in order to take advantage of the full amount.

To do this they need to send an Apprenticeship Levy EPS (EPS AL) for the relevant year and the PAYE scheme for which they wish to transfer the levy allowance to claim the allowance. If the PAYE scheme to which they wish to transfer the excess levy allowance is paid in full at the time they transfer the excess levy allowance, an unallocated credit will be created. This credit will be subject to normal unallocated credit BAU processes.