Employers fall into one of two groups: levy payers and non-levy payers. Employers with a paybill of more than £3 million are required to pay the levy – whether they employ an apprentice or not. Your paybill includes all payments to employees that are subject to Class 1 secondary National Insurance Contributions, such as wages, bonuses and commission.
Example: (Levy Paying company with paybill of £5,000,000)
Levy Sum: £5,000,000 x 0.5% = £25,000
Levy Allowance: £15,000
Levy Payment: £25,000 – £15,000 = £10,000 (Payment due)