---
title: "How do I allocate an apprenticeship levy/employment allowance to PAYE schemes?"
slug: "how-do-i-allocate-an-apprenticeship-levy-employment-allowance-to-paye-schemes"
updated: 2026-06-10T11:26:23Z
published: 2026-06-10T11:26:23Z
canonical: "help.cintra.co.uk/how-do-i-allocate-an-apprenticeship-levy-employment-allowance-to-paye-schemes"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.cintra.co.uk/llms.txt
> Use this file to discover all available pages before exploring further.

# How do I allocate an apprenticeship levy/employment allowance to PAYE schemes?

## Employment Allowance

Eligible employers can reduce their annual **National Insurance (NI)** liability up to **£4000**. For more information about eligibility, see [https://www.gov.uk/claim-employment-allowance/eligibility](https://www.gov.uk/claim-employment-allowance/eligibility)

- You can claim each month until you reach the **£4000** total or until the tax year ends, whichever come first.
- The total **Employment Allowance** that can be allocated is **£4000** across the tax year. This is deducted from the total due to **HMRC**.
- You can still claim **Employment Allowance** if your liability is less than **£4,000** a year.
- You can only offset your **Employment Allowance** off your **ERs NI** contributions.

## To allocate the employment allowance

1. Navigate to the **Employer** definition window. Go to **Cintra iQ**: Payroll > Payroll Setup > Employer Setup
2. Open the desired **Employer**. The **Employer** window appears.
3. Navigate to the **Allowances** tab.
4. Select the desired **Tax Year**.
5. Double-click on the **PAYE Scheme** you wish to add the **Employment Allowance**. The **Allowances** form appears.
6. In the **Employment Allowance** section, perform the following:
  - Select the **Entitled to Claim** check box.
  - Enter the **Allowance Take-On** amount if you start using **Cintra iQ** part way through the tax year.
7. Click the **OK** button. The allowance is allocated to the **PAYE** scheme. You are now ready to pay **HMRC** and view the reports.
8. Continue to pay **HMRC**.

## Apprenticeship Allowance

From **6th April 2017**, all employers have a liability for the new **Apprenticeship Levy (AL)**.

- The **AL** is calculated at **0.5%** of the total Paybill for each **PAYE** scheme.
- The **Paybill** is all earnings liable to **Class 1 Secondary NICs**. (Liable to Employer’s NICs.)
- The **Allowance** applies to an **Employer** or **Connected Group of Companies** or **Charities** and may be split across the **PAYE** schemes that they operate. The total **Allowance** that can be allocated is **£15,000** from tax year **2017/18**.
- The **AL** is calculated for each **Tax Month** with the **Allowance** being proportioned across the year. Any resulting **Levy** due is reported on the **EPS** document and added to your **HMRC Liability**. This calculation happens automatically whenever the payment run is created.

Within **Cintra iQ**, you can allocate **AL Allowances** across your company’s **PAYE** schemes and this **Allowance** will be offset against any **AL** due for a scheme. For more information, see [How Do I View the Statutory Payments for the Apprenticeship Levy?](https://cintraiq.zendesk.com/hc/en-gb/articles/13608311274513)

## To allocate the apprenticeship allowance

1. Navigate to the **Employer** definition window.

Go to **Cintra iQ**: Payroll > Payroll Setup > Employer Setup
2. Open the desired **Employer**. The **Employer** window appears.
3. Navigate to the **Allowances** tab.
4. Double-click on the **PAYE Scheme** you wish to add the **AL Allowance**. The **Allowances** form appears.
5. Enter the **Allowance Amount** for the tax year.

> [!NOTE]
> **Note:** If you have more than one PAYE scheme, then the total cannot exceed the maximum allowance for any single Employer or Group of Connected Companies or Charity.
6. Perform the following, if you have started using **Cintra iQ** part way through the tax year.
  1. Enter the previous **Cumulative Paybill Take-On** amount that you wish the current **PAYE** scheme to take into account.
  2. Enter the previous **Cumulative Levy Take-On** amount that you wish the current **PAYE** scheme to take into account.
7. Click the **OK** button. The allowance is allocated to the **PAYE** scheme. You are now ready to pay **HMRC** and view the reports.
8. Continue to [pay HMRC](/iq/docs/how-do-i-pay-hmrc) or view the **AL** reports.