UK Apprenticeship Levy

An Oracle White Paper
Oracle Payroll UK Localization

Apprenticeship Levy Changes
April 2017
- White Paper (Version 1)
Document Change Control
Published on Version Data Changed
04-Jan-2017 Version 1 Initial Version

Table of Contents
Document Change Control ......................................................................................................................................... 2
Table of Contents ....................................................................................................................................................... 3
Introduction ................................................................................................................................................................ 4
How the Apprenticeship Levy is Calculated .......................................................................................................... 4
Calculation of Pay Bill ....................................................................................................................................... 4
Annual Allowance ............................................................................................................................................... 4
Relevant Percentage ........................................................................................................................................... 6
Calculation of Apprenticeship Levy Due ............................................................................................................ 6
Exclusions from Apprenticeship Levy Reporting .............................................................................................. 6
Reporting ................................................................................................................................................................ 7
EPS – Report Values .......................................................................................................................................... 7
EPS – Over-ride Calculated Values ................................................................................................................... 7
EPS – Changes to Previous Tax Years ............................................................................................................... 7
Post Implementation Steps ..................................................................................................................................... 7
Seed Data Delivered ............................................................................................................................................... 8
Global Changes .................................................................................................................................................. 8
Data Capture Changes: ....................................................................................................................................... 9
Extra Assignment Information (EIT) ............................................................................................................... 14
Data capture for Mid Year Migration from Legacy systems:........................................................................... 16
Formula Changes .............................................................................................................................................. 17
Formula Results ................................................................................................................................................ 17
Element Changes .............................................................................................................................................. 18
Balance Changes .............................................................................................................................................. 19
Formula Changes .............................................................................................................................................. 22
EPS Package Changes: ..................................................................................................................................... 24
Reporting Changes: .......................................................................................................................................... 27
Introduction
From 6th April 2017, the government is changing the way that apprenticeships are funded. All employers
with a pay bill of more than £3 million must pay an apprenticeship levy, regardless of whether or not they
actually take on apprentices. This money will then be held in an employer account from which money can
be drawn to pay for apprenticeships.
The amount of levy due will be reported on the EPS each month and paid over to HMRC along with other
payments of PAYE, NICs etc.
The Oracle Application has been enhanced to allow employers to calculate and report the apprenticeship levy
accurately.
How the Apprenticeship Levy is Calculated

Calculation of Pay Bill
The calculation of the apprenticeship levy due to be paid by any employer is based on the pay bill for the PAYE
Scheme. The calculation is always made using the year to date values of the pay bill as of the end of the tax month
being processed, based on all employees within the PAYE scheme. For customers with multiple payrolls this may
cover a number of payroll processes and frequencies – e.g. employees with one monthly payroll run and others with
4 weekly payroll runs. The process will derive the cumulative year to date balance of the pay bill across all these
processes and employees.
The pay bill is defined as the total amount of earnings on which secondary Class 1 contributions of National
Insurance are payable (i.e. employer’s NI contributions). This will include:
 All earnings subject to secondary class 1 NI – include all earnings of all employees subject to these
inclusion and exclusion rules.
 All earnings below the Secondary Threshold for relevant employees, as well as earnings above the Upper
Earnings Limit.
 Earnings of employees under 21 years of age and apprentices under 25 years of age.
o Although for these employees the rate of employer’s NI is set at 0% and therefore no actual
contribution is due, the payment is still deemed liable to secondary class 1 NI
 Earnings of employees who are over state pension age (NI category C) as an employer contribution is still
due against their earnings
o N.B. Actual pension contributions are not included as these are not subject to NI.
The following amounts are not included in the pay bill:
 Earnings paid to anyone who is not liable for NI contributions – i.e. NI category X. For example:
o Employees under 16 years of age
o Employees who are not subject to UK NI legislation (e.g. some foreign secondees)
 Payments which are not subject to NICs – e.g. most pension payments
 Payments which are subject to Class 1A NICs – e.g. benefits in kind
Annual Allowance
Each employer has an annual allowance of £15,000 which is offset against the calculation of the levy to ensure that
employers with a pay bill of £3 million or less do not actually pay any levy amount. (0.5% of £3 million is £15,000)
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Where an organization operates a number of PAYE schemes and HMRC consider them to have connections which
mean they are effectively classed as a single employer for the purposes of calculating the apprenticeship levy
(‘linked PAYE Schemes’), the annual allowance may be split across the PAYE schemes. The total amount of the
allowance must not exceed £15,000, but this may be split in any way which meets the requirements of the
employers, to minimize any levy due.
A mechanism has been provided to allow employers to record the amount of the annual allowance to be allocated to
a PAYE Scheme. The maximum maximum value allowed is £15,000 but it is possible to record values less than
£15,000. The annual amount must always be recorded in whole pounds. The minimum value allowed is £0
The cumulative monthly calculation of the allowance is as follows:
 annual allowance divided by 12, truncated to 2 decimal places
 multiplied by the number of the tax month being calculated
Rounding is done before multiplying by the tax month to ensure the overall £15,000 limit is never exceeded. This
is particularly important where the annual allowance has been apportioned across more than one employer.
Legislation defines the monthly allowance as:
n/p
where n is the levy allowance for the tax year, and p is twelve
For a PAYE scheme which is entitled to the full allowance of £15,000 this gives values of:
Relevant Month in the Tax YearMonthly Cumulative Levy Allowance

1 £1250 x 1 = £1250 (£15,000 / 12)
2 £1250 x 2 = £2500
3 £1250 x 3 = £3750
4 £1250 x 4 = £5000
5 £1250 x 5 = £1250
6 £1250 x 6 = £7500
7 £1250 x 7 = £8750
8 £1250 x 8 = £10000
9 £1250 x 9 = £11250
10 £1250 x 10 = £12500
11 £1250 x 11 = £13750
12 £1250 x 12 = £15000
For a PAYE scheme which does not have a full allowance, the same principle applies, with rounding as detailed
above. For example, where the annual allowance is set at £5,000, the values would be:

1 £416.66 x 1 = £416.66 (£5,000 / 12 truncated)
2 £416.66 x 2 = £833.32
3 £416.66 x 3 = £1249.98
4 £416.66 x 4 = £1666.64
5 £416.66 x 5 = £2083.30
6 £416.66 x 6 = £2499.96
7 £416.66 x 7 = £2916.62
8 £416.66 x 8 = £3333.28
9 £416.66 x 9 = £3749.94
10 £416.66 x 10 = £4166.60
11 £416.66 x 11 = £4583.26
12 £416.66 x 12 = £4999.92
As can be seen in the above example, the rules on rounding may mean that an employer receives slightly less than
the full annual allowance. This is to ensure that linked employers do not accidentally exceed the £15,000 limit on
the annual allowance.
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Relevant Percentage
The ‘relevant percentage’ is the value to be used when calculating the employer’s liability. Currently this is set as
0.5%.
Calculation of Apprenticeship Levy Due
The calculation of the apprenticeship levy due in any month is specified as follows:
 Determine the cumulative amount of the pay bill for the tax year as of the end of the tax month being
calculated
 Multiply this amount by 0.5% to give the cumulative value of apprenticeship levy due for the tax year
o The amount of the levy due is truncated to whole pounds
 Determine the amount of the cumulative levy allowance for the relevant tax month (as detailed in previous
section) based on the value recorded for the PAYE scheme in question
 Deduct the cumulative amount of the levy allowance (YTD) from the cumulative levy due (YTD)
o This is rounded down to the nearest whole pound in favour of the employer
Because the calculation works on a cumulative basis, a pay bill which varies from month to month may mean that an
amount of levy due in a prior month, may be effectively refunded in a later month where the cumulative liability
reduces. Employers will reclaim this ‘refund’ by offsetting it against their overall liability for PAYE / NI etc.
Businesses Which Operate for a Partial Year

An employer is entitled to the full annual allowance even if a company operates for only part of the tax year. So, if
a PAYE scheme is set up, for example, in tax month 3, the apprenticeship levy will still calculate using the pro-rata
annual allowance as of month 3.
Similarly, if a business ceases trading in month 2, the full annual allowance must be offset against the pay bill as of
month 2 when the final submission is done. Where an EPS is submitted with the field ‘Final Submission Ceased’
set, then the calculation of apprenticeship levy will use the full annual allowance held for the PAYE scheme. Where
the allowance has been apportioned across connected companies, the apportioned annual amount will be used.
Exclusions from Apprenticeship Levy Reporting
Employer with a Pay Bill Less Than £3 Million
 Where an employer has no liability to pay apprenticeship levy because their pay bill is under £3 million,
there is no requirement for them to calculate and report a zero value. A mechanism is provided to allow a particular
PAYE scheme to be excluded from the apprenticeship levy calculation where it meets the relevant criteria.
 Where a PAYE scheme is excluded, there is no need to include it where a seasonal spike causes the
cumulative pay bill to appear to be over the limit for the year, provided the employer is confident that the overall
pay bill for the year will not exceed £3 million.
Pooled PAYE Schemes

Some companies operate a ‘pooled’ PAYE Scheme where unconnected companies are processed under a single
PAYE scheme for administrative purposes, although each is a separate employer.
HMRC have indicated that any such small employer would not be liable to calculate or report apprenticeship levy
provided they meet the relevant criteria (i.e. the pay bill will not exceed £3 million in the current year).
A mechanism is provided employers to exclude specific employees or groups of employees from the apprenticeship
levy calculation. Where this exclusion rule is set:
 Their earnings will not be taken into account when calculating the secondary class 1 NICable earnings
which make up the pay bill
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 No apprenticeship levy will be calculated against their earnings or reported on the EPS
It is only possible to allocate one annual allowance of up to £15,000 against a PAYE scheme. Therefore, if multiple
unconnected employers with a pay bill of more than £3 million are processed under a single PAYE scheme, they
will need to set up individual PAYE schemes to allow effective processing of the apprenticeship levy.
Reporting
EPS – Report Values
The relevant value calculated for Apprenticeship Levy Due Year to Date is calculated and reported on the EPS each
tax month, including values for the entire PAYE scheme.
The apprenticeship levy calculation is specifically based on the employer’s pay bill so it is not to calculate a value
during payroll processing based on individual payments. The calculation has to be carried out at the end of the tax
month based on the employer level values.
EPS – Over-ride Calculated Values
As with other values on the EPS, the employer has the ability to view and update values calculated prior to
submitting the EPS file to HMRC.
EPS – Changes to Previous Tax Years
Where the pay bill for an earlier tax year changes, the employer must re-calculate and re-submit the updated value of
the apprenticeship levy for that year. This must be done by re-running the EPS for tax month 12 - the system will
calculate the apprenticeship levy based on the latest values of the pay bill for that tax year.
Post Implementation Steps

Once you have installed the TYE Patch(s) the following Post Install steps must be completed:
 Navigate to
o UK Super HRMS Manager > Processes and Reports > Submit Processes and
Reports
 Click Single Request
 Select Register Extra Information Types (EITs) with the following parameters:
o Table Name = PER_ASSIGNMENT_INFO_TYPES
o Information Type = Apprenticeship Exclusion Rules
o Details Multiple Rows = No
o Legislation Code = United Kingdom
 Submit the concurrent program
 Assign the EIT to your responsibility

o UK Super HRMS Manager > Security > Information Types Security
 Query your responsibility in the Responsibility Name Field
 Click in the Information Types region below and enter a new record:
o Enter the code = GB_APL_EXCLUSION_RULES
o Save
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Now, you should be able to view the EIT within your responsibility.
To view the EIT, navigate to Person -> Assignment-> Others -> Extra Information.
Data Items & Setup

This section and the sections that immediately follow represent the detailed functional design summary
for every component of the solution.
Seed Data Delivered

To accommodate the above requirement, a number of globals have been introduced.
Global Changes
Navigation: Total Compensation\Basic\Global value
The following two globals are introduced effective from 6th April 2017 to capture Relevant Percentage and Annual
Allowance details:
Relevant Percentage
The ‘relevant percentage’ is the value to be used when calculating the employer’s liability. Currently this is set as
0.5%.
Global Name Effective Effective End Global Description
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Start Date Date Value
APPRENTICE_PERCENTAGE 06-Apr-2017 31-Dec-4712 0.005 Relevant Apprenticeship Levy

Percentage
Annual Allowance
Each employer has an annual allowance of £15,000 which is offset against the calculation of the levy to ensure that
employers with a pay bill of £3 million or less do not actually pay any levy amount. (0.5% of £3 million is £15,000)
Global Name Effective Effective End Global Description

Start Date Date Value
ANNUAL_APP_LEVY_ALLOWANCE 06-Apr-2017 31-Dec-4712 15000 Annual Apprenticeship

Levy Allowance Amount
Data Capture Changes:
Annual Allowance:
Employers can record the amount of the annual allowance to be allocated to a specific PAYE Scheme.
Provision has been provided to record this at PAYE Reference level. A new field named “Annual Apprenticeship
Levy Allowance” is introduced against context “Tax Details References (Cont.).” The value must be input as whole
pounds.
Navigation:
PAYE Reference Level:
Work Structures->Organization->Description->Others->Business Group-> Tax Details References(Cont.).
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Validations:
Condition Error Message

Please enter a value between 0 and 15000
If Annual Apprenticeship Levy Allowance entered
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is greater than 15000

Please enter a value between 0 and 15000
If Annual Apprenticeship Levy Allowance entered
is negative
Exclusions from Apprenticeship Levy Reporting

A mechanism is provided to allow employers to exclude specific employees or groups of employees from the
apprenticeship levy calculation.
The mechanism will allow the employer to exclude:
 Individual employments
 Payrolls where all individual employments belong to small employers (as determined and controlled by the
employer)
 Groups of employees who belong to an organization that has been identified as being a small employer in
its own right (controlled by the employer)
To accommodate the above requirement, provision has been provided to record the exclusion rules at multiple
levels:
 PAYE Reference level

 Payroll level (New fields in the Statutory Information Screen)
 Assignment level (Assignment EIT).
 HR Organization level (Based on Profile option).
Users can set the exclusion rule at any of these levels. The order of precedence is Assignment level, followed by
Payroll Level, HR Organization (Based on Profile option) and PAYE Reference Level.
Work Structures->Organization->Description->Others->Business Group-> Tax Details References(Cont).
A new field named “Apprenticeship Levy” is introduced against context “Tax Details References (Cont).” This has a
LOV attached with values “Exclude” and “Include”. The default is be set to “NULL” (that is include).
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HR Organization Level:
Work Structures->Organization->Description->HR Organization -> Others->
A new field named “Apprenticeship Levy” has been introduced against context “GB_APL_EXCLUSION_RULES.”
This has a LOV attached with values “Exclude” and “Include”.
The default is set to “NULL”. In this scenario, the processing flow will check for the exclusion rule set at PAYE
Reference level.
A new Profile named “Apprenticeship Exclusion Rules” has been delivered to control exclusion rules set at HR
Organization level:
 Profile Name: Apprenticeship Exclusion Rules
o LOV is attached to the Profile with values “Include” and “Exclude”
o The default value is set to “Exclude”
Exclusion rules set at HR Organization level are considered only if the Profile Option “Apprenticeship Exclusion
Rules” is set to “Include”. The default value is set to “Exclude”.
Note: Users must not use HR Organization level option if they have employee assignments within the same HR
Organizations and spanning across multiple PAYE References as this will cause conflicts with the processing
priorities.
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Payroll Level:
Navigation-> Define Payroll -> Statutory Information
A new field named “Apprenticeship Levy” has been introduced against context “GB Statutory Info.”. This has a
LOV attached with values “Exclude” and “Include”.
The default is set to “NULL”. In this scenario, the processing flow will check for exclusion rules set at PAYE
Reference or HR Organization level.
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Extra Assignment Information (EIT)

A provision has been made on the Extra Assignment EIT, to store Exclusion rules at assignment level.
A new context name “GB_APL_EXCLUSION_RULES” has been delivered.
A new segment named “Apprenticeship Levy” has been added. This has a LOV attached with values “Exclude” and
“Include”. The default is set to “NULL”. In this scenario, the processing flow will consider the value set at Payroll
Level.
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Data capture for Mid Year Migration from Legacy systems:
To the existing context "Tax Details References(Cont.)" at Business group Level (PAYE Reference level) the
following fields are added for mid-year migration:
Navigation: Work Structures->Organization->Description->Others->Business Group-> Tax Details

References(Cont.).
Field Name Comments

Legacy Reporting Year User needs to enter year at the end of the tax year. example: for
2017-18 EPS submission it should be entered as 2018.
Legacy Employer Pay Bill YTD User enterable field
Legacy Apprenticeship Levy YTD User enterable field
Validation changes:
The following error messages are introduced:
 If invalid reporting year is entered, then,

o Error Message: Please enter a value between 2016 and 4712
 If negative value is entered for field Legacy Employer Pay Bill YTD, then,
o Error Message: Please enter a value between 0 and 999999999999
 If characters are entered for field Legacy Employer Pay Bill YTD, then,
o Error Message: Valid characters are 0-9
 If negative value is entered for field Legacy Apprenticeship Levy YTD, then,
o Error Message: Please enter a value between 0.00 and 99999999.99
 If characters are entered for field Legacy Apprenticeship Levy YTD, then,
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o Error Message: Valid characters are 0-9
Formula Changes
Navigation: \Total Compensation\Basic\Formula
The following NI formulas have been modified:
1. NI
2. NI_PERSON
3. NI_DIRECTOR
The following two values will be passed from the NI formula as Indirect Results to a new Indirect Element
“Employer Pay Bill” via formula results.
 NI Category (L_NI_CAT_RET_VAL)
 NIable Amount (L_NIABLE_PAY)
Formula Results
Navigation: \Other Definition\Formula Results
Formula Results are delivered effective from 01-Jan-2017. The formula results are delivered effective from 01-
Jan-2017 to cater for offset payrolls.
NI formula: Formula Results
Formula Result Name Direct/Indirect Element Name Input Value

L_NI_CAT_RET_VAL Indirect Employer Pay Bill NI Category
L_NIABLE_PAY Indirect Employer Pay Bill NIable Amount
Employer Pay Bill : Formula Results
Formula Result Name Direct/Indirect Element Name Input Value

LN_INCLUDE_IN_PAY_BILL Direct Employer Pay Bill Pay Value
LV_REASON_FOR_EXCLUSION Direct Employer Pay Bill Reason for Exclusion
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Element Changes
Navigation: \Total Compensation\Basic\Define Element
A new element listed below has been created effective from 01-Jan-2017.
 Employer Pay Bill
o This will capture the values to be considered when calculating the pay bill for the employer.
Element:
Employer Pay Bill
 Indirect element
Element Name Employer Pay Bill Reporting Name Employer Pay Bill
Description Employer Pay Bill
Primary Classification Information
Date From 01-Jan-2017 Date To
Processing Standard – Non- Recurring Priority 6000
Termination Rule Final Close
Multiple Entries Allowed Yes
Input Values
Name Units Sequence Requir User DBI Hot Def Value FF Min M Effective From
ed Enterable Set ax
NIable Amount Money 1 Y 01-Jan-2017
NI Category Character 2 Y Y 01-Jan-2017
Reason for Character 3 Y Y 01-Jan-2017

exclusion
Pay Value Money 4 Y Y 01-Jan-2017
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Balance Changes
Navigation: Total Compensation\Basic\Define Balance
The following balance has been newly created:
 Employer Pay Bill
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Balance Name Employer Pay Bill Reporting Name Employer Pay Bill
Description Employer Pay Bill
Category Misc NI Related Base Balance Units Money
Currency GBP Use for Gross Up

Remuneration
Primary Balance
Element Employer Pay Bill Input Value Pay Value
Classifications
Classification Add or Subtract
Dimensions
_ASG_RUN Y
_PER_TD_PTD Y
_ASG_TD_YTD Y
_ASG_TRANSFER_PTD Y
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Formula Changes
Navigation: \Other Definition\Formula Changes
Formula EMPLOYER_PAY_BILL has been created effective from 01-Jan-2017.
Formula EMPLOYER_PAY_BILL has been attached to the Employer Pay Bill element.
Pseudocode:
The following checks have been made in the formula:
 Firstly processing is restricted based on exclusion rules.

o Exclusion rules are given preference in the following order.
 Assignment EIT
 Payroll
 HR Organization(Based on Profile Option)
 PAYE Reference Level
o If the “Apprenticeship Levy” exclusion rule is set to “Exclude”, this set of
members will be excluded from the list.
 Secondly processing is restricted based on NI Category
o Employee is excluded from processing:
 If NI Category is X
 Next, exclude
o payments which are not subject to NICs – e.g. most pension payments
o payments which are liable for Class 1A NICs – e.g. benefits in kind
 That is, all earnings subject to secondary class 1 NI are considered taking into account the above exclusion
rules. (i.e. NIABLE_PAY_ASG_RUN)
 Next, Pay bill is computed for the employee and fed to Employer Pay Bill balance.
A new formula function has been delivered to derive the Exclusion rules as follows. The formula function is named
as “GB_APPRENTICE_PB_ELIGIBILITY”
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CURSOR fetch_levy_exclusion_rule IS
SELECT
scl.segment21 as exclusion_rule
FROM pay_all_payrolls_f ppf
,hr_soft_coding_keyflex scl
WHERE ppf.payroll_id = g_payroll_id
AND scl.soft_coding_keyflex_id = ppf.soft_coding_keyflex_id
AND p_effective_date BETWEEN ppf.effective_start_date AND ppf.effective_end_date
CURSOR c_emp_eit_assignment
(p_assignment_id IN per_all_assignments_f.ASSIGNMENT_ID%TYPE) IS
SELECT *
FROM per_assignment_extra_info
WHERE AEI_INFORMATION_CATEGORY
LIKE 'GB_APR_EXCLUSION_RULES'
If the exclusion rule is set to “Exclude”, then the employee assignment will be excluded from processing and the pay
bill will be set to 0.
When the employee is to be excluded the pay value will be set to 0.
Formula Name EMPLOYER_PAY_BILL Type Oracle Payroll
Description This fast formula will be used to determine the Employers Pay Bill amount for individual
employee
Effective Date
From 01-JAN-2017 To
Edit
/*****************************************************************
$Header: pygbffothers.hdt 120.0.12010000.22 2016/12/16 07:34:09 ship $
Formula Name : EMPLOYER_PAY_BILL
Description : This fast formula will be used to determine the
Employers Pay Bill amount for individual employee .
Effective Start Date : 01/01/2017
Effective End Date : 31/12/4712
/* *************************************************************************** */
DEFAULT FOR ln_emp_eligibility IS 0.00
DEFAULT FOR ln_include_in_pay_bill IS 0.00
DEFAULT FOR lv_reason_for_exclusion is ' '
DEFAULT FOR l_ni_category IS ' '
DEFAULT FOR NIable_amount IS 0.00
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INPUTS ARE
NIable_amount,
NI_category(Text)
ln_emp_eligibility=0.00
ln_include_in_pay_bill=0.00
lv_reason_for_exclusion='NOT EXCLUDED'
l_ni_category=' '
l_ni_category=NI_category
ln_emp_eligibility = GB_APPRENTICE_PB_ELIGIBILITY(lv_reason_for_exclusion)
IF(ln_emp_eligibility = 1 ) THEN
( IF (l_ni_category = 'X' ) THEN
( ln_include_in_pay_bill = 0
lv_reason_for_exclusion = 'NI Category is X'
ELSE
( ln_include_in_pay_bill = NIABLE_AMOUNT - EMPLOYER_PAY_BILL_INTERIM_ASG_PROC_PTD
ELSE
( ln_include_in_pay_bill = 0
RETURN lv_reason_for_exclusion,ln_include_in_pay_bill
/* End of formula : EMPLOYER_PAY_BILL*/
EPS Package Changes:

The package Create_GB_RTI_EPS_RECORDM_17 has been revised.
The following approach is followed.
 YTD Employer Pay Bill (employee earnings subject to Class 1 secondary NICs) is fetched for every eligible
employee. That is the balance EMPLOYER_PAY_BILL_ASG_TD_YTD will be used.
 The Employer Pay Bill of all employees sharing the same PAYE Reference is added together to arrive at the
cumulative Levy Liability. Balance EMPLOYER_PAY_BILL_ASG_TD_YTD would be called in a loop to
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sum up the values across all eligible employees.

 Then the levy is computed by applying the relevant percentage of 0.5% on the cumulative employer pay bill.
(Derived in the above step).
 The following globals are fetched to retrieve the relevant percentage and annual allowance value:
Cursor c_relevant_percentage is
select global_value from ff_globals where
global_name like APPRENTICE_PERCENTAGE’
and legislation_code='GB'
and effective_date between effective_start_date and effective_end_date
Cursor c_annual_Allowance is
select global_value from ff_globals where
global_name like ‘ANNUAL_APP_LEVY_ALLOWANCE’
and legislation_code='GB'
and effective_date between effective_start_date and effective_end_date
The annual allowance value retrieved from ANNUAL_APP_LEVY_ALLOWANCE is compared to the

annual allowance value if any is specified at the PAYE Details Reference (Tax Details Reference Cont)
EIT level to ensure that it does not cross the 15000 limit.
If the annual allowance value is overridden by the user, then the below cursor will be used to retrieve the
value from PAYE Reference Level.
CURSOR c_fetch_annual_allowance IS
SELECT
hoi.org_information6 as annual_allowance,
hoi.org_information7 as exclusion_rule
FROM pay_payrolls_f ppf
,hr_soft_coding_keyflex hscf
,hr_organization_information hoi
WHERE ppf.payroll_id = g_payroll_id
AND ppf.business_group_id = hoi.organization_id
AND hoi.org_information_context = ‘Tax Details References Cont’
AND nvl (hoi.org_information10 ,'UK') = 'UK'
AND ppf.soft_coding_keyflex_id = hscf.soft_coding_keyflex_id
AND p_effective_date BETWEEN ppf.effective_start_date AND ppf.effective_end_date
AND hscf.segment1 = hoi.org_information1;
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While running the EPS if Final Submission parameter is to “Yes-Ceased” then the full annual allowance
retrieved from the above PAYE Scheme EIT is used as opposed to using the monthly cumulative levy
allowance.
Example Monthly Cumulative Levy allowance:

For a PAYE scheme which is entitled to the full allowance of £15,000 this would give values of:

1 £1250 x 1 = £1250 (£15,000 / 12)
2 £1250 x 2 = £2500
3 £1250 x 3 = £3750
4 £1250 x 4 = £5000
5 £1250 x 5 = £1250
6 £1250 x 6 = £7500
7 £1250 x 7 = £8750
8 £1250 x 8 = £10000
9 £1250 x 9 = £11250
10 £1250 x 10 = £12500
11 £1250 x 11 = £13750
12 £1250 x 12 = £15000
If a business ceases trading in month 2, the full annual allowance must be offset against the pay bill as of
month 2 when the final submission is done, as opposed to considering the monthly cumulative levy
allowance. Where the allowance has been apportioned across connected companies, the apportioned annual
amount will be used.
In this case, for month 2, the full levy of 15000 would be offset as opposed to 2500.
The Monthly Cumulative Levy Allowance would be computed as follows:

Based on the Effective Date parameter passed to the Create EPS Program, the tax month would be derived.
l_month := Would be set to the tax month derived.
ln_apr_annual_allowance := Then the annual allowance would be derived from the EIT if
overridden by user or from the global ANNUAL_APP_LEVY_ALLOWANCE.
ln_effective_allowance := (ln_apr_annual_allowance/12)* l_month
OPEN get_defined_balance_id('Employer Pay Bill,'_ASG_TD_YTD');

FETCH get_defined_balance_id INTO g_app_levy_id;
CLOSE get_defined_balance_id;
Loop through all the assignments:

FOR I IN c_lat_assignment_actions
LOOP
p_employer_pay_bill:= p_employer_pay_bill +
HR_DIRBAL.GET_BALANCE(I.lat_assignment_action_id,g_app_levy_ID);
END LOOP
Computed annual allowance is truncated to 2 decimals, then multiplied by the tax month.
l_cumulative_allowance_:= trunc(ln_apr_annual_allowance/12,2) * ln_month ;
Page 26 of 29
l_pay_bill_amt_levy := p_employer_pay_bill * ln_apr_percentage - ln_effective_allowance;
In case of a midyear migration to Oracle HRMS, following fields available at PAYE Reference level are
retrieved
a> Legacy Reporting Year
b> Legacy Employer Pay Bill YTD
c> Legacy Apprenticeship Levy YTD
During EPS submission, Legacy Reporting Year will be compared with the current tax year. If it
matches, then Legacy Employer Pay Bill YTD and Legacy Apprenticeship Levy YTD will be used to
calculate the effective Employer Pay Bill and final Apprenticeship Levy YTD respectively.
The values computed will be recorded in the following columns in PAY_GB_EPS_DETAILS table.
Table Name PAY_GB_EPS_DETAILS

Column Name Comments
APPRENTICE_LEVY_DUE_YTD Records Apprenticeship Levy due year to date
APPRENTICE_LEVY_DUE_YTD_CALC Records Apprenticeship Levy due year to date
ANNUAL_APP_LEVY_ALLOW_AMT Records Annual Apprenticeship Levy allowance amount
ANNUAL_APP_LEVY_ALLOW_CALC Records Annual Apprenticeship Levy allowance amount
APP_EMPLOYER_PAY_BILL Records Employer Pay Bill
APP_EMPLOYER_PAY_BILL_YTD Records Employer Pay Bill YTD
Example – Regular pay bill of £300000 each month (£3.6m for the tax year)
Month 1 and each month of the tax year thereafter
£300000 x 0.5% = £1500 levy

Cumulative levy allowance = £1250
Levy payable month 1 £1500 - £1250 = £250
Month 2
£600000 (£300000 + £300000) x 0.5% = £3000

Cumulative levy allowance £2500
Levy payable to month 2 is £3000 - £2500 = £500
Levy paid in month 2 = levy payable to month 2 – levy paid to month 1 = £500 – £250 = £250
And so on until month 12
£3.6 million (£300000 x 12) x 0.5% = £18000

Cumulative levy allowance £15000
Levy payable to month 12 is £3000
Levy paid in month 12 = levy payable to month 12 – levy paid to month 11 = £3000 – £2750
= £250
This means that the organization pays £250 each month in levy which totals £3000 over the year.
Reporting Changes:
To accommodate the reporting requirement a new report named "GB Apprenticeship Levy Costing Sheet" has
been delivered.
This report lists all the required Apprenticeship details for the relevant PAYE Reference. The repot output is
generated in Excel format.
Concurrent Program: GB Apprenticeship Levy Costing Sheet
Page 27 of 29
Parameters:
a) PAYE Reference
- Mandatory parameter
b) Tax Year
- Mandatory parameter
The information reported on the report is as follows:
Processing Parameters:
- Tax Year
- PAYE Reference.
Detailed Information
-Month
-Employer Pay Bill
-Employer Pay Bill YTD
-Gross Apprenticeship Levy
-Gross Apprenticeship Levy YTD
-Apprenticeship Allowance
-Apprenticeship Allowance YTD
-Net Apprenticeship Levy Paid Each Month
-Net Apprenticeship Levy Paid Each Month YTD
Page 28 of 29
Report Output:
Page 29 of 29

UK Apprenticeship Levy

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UK Apprenticeship Levy

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An Oracle White Paper

Oracle Payroll UK Localization

04-Jan-2017 Version 1 Initial Version

How the Apprenticeship Levy is Calculated

Relevant Month in the Tax YearMonthly Cumulative Levy Allowance

Relevant Month in the Tax YearMonthly Cumulative Levy Allowance

Businesses Which Operate for a Partial Year

Employer with a Pay Bill Less Than £3 Million

Pooled PAYE Schemes

Post Implementation Steps

 Assign the EIT to your responsibility

Data Items & Setup

Seed Data Delivered

Global Name Effective Effective End Global Description

Start Date Date Value

APPRENTICE_PERCENTAGE 06-Apr-2017 31-Dec-4712 0.005 Relevant Apprenticeship Levy

Global Name Effective Effective End Global Description

ANNUAL_APP_LEVY_ALLOWANCE 06-Apr-2017 31-Dec-4712 15000 Annual Apprenticeship

Data Capture Changes:

PAYE Reference Level:

Work Structures->Organization->Description->Others->Business Group-> Tax Details References(Cont.).

Condition Error Message

is greater than 15000

Exclusions from Apprenticeship Levy Reporting

The mechanism will allow the employer to exclude:

 PAYE Reference level

PAYE Reference Level:

Work Structures->Organization->Description->Others->Business Group-> Tax Details References(Cont).

Work Structures->Organization->Description->HR Organization -> Others->

Navigation-> Define Payroll -> Statutory Information

Extra Assignment Information (EIT)

A new context name “GB_APL_EXCLUSION_RULES” has been delivered.

Data capture for Mid Year Migration from Legacy systems:

PAYE Reference Level:

Navigation: Work Structures->Organization->Description->Others->Business Group-> Tax Details

Field Name Comments

The following error messages are introduced:

 If invalid reporting year is entered, then,

o Error Message: Valid characters are 0-9

Formula Result Name Direct/Indirect Element Name Input Value

Employer Pay Bill : Formula Results

Formula Result Name Direct/Indirect Element Name Input Value

Description Employer Pay Bill

Primary Classification Information

Date From 01-Jan-2017 Date To

Processing Standard – Non- Recurring Priority 6000

Termination Rule Final Close

Multiple Entries Allowed Yes

NIable Amount Money 1 Y 01-Jan-2017

NI Category Character 2 Y Y 01-Jan-2017

Reason for Character 3 Y Y 01-Jan-2017

Pay Value Money 4 Y Y 01-Jan-2017

Description Employer Pay Bill

Category Misc NI Related Base Balance Units Money

Currency GBP Use for Gross Up

Element Employer Pay Bill Input Value Pay Value

Classification Add or Subtract

The following checks have been made in the formula:

 Firstly processing is restricted based on exclusion rules.

When the employee is to be excluded the pay value will be set to 0.

Formula Name EMPLOYER_PAY_BILL Type Oracle Payroll

$Header: pygbffothers.hdt 120.0.12010000.22 2016/12/16 07:34:09 ship $

Formula Name : EMPLOYER_PAY_BILL

Description : This fast formula will be used to determine the