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The Apprenticeship Levy functionality is essential to ensure compliance. As an SME approaching the £3 million threshold, this feature is critical for us. If Xero does not implement this functionality before April 2026, we will have no choice but to transition to an alternative payroll provider.

The point being that the Apprenticeship Levy can apply to "small" companies or "large" companies for which there is no definition as far as payroll is concerned, especially where there are connected companies and one company claims 100% of the allowance. This is a compliance failure and goes beyond a suggestion box an idea or wish list. This should be rectified as a matter of urgency!

It's wild that this isn't yet a function of xero. Please prioritise this!

Critical also for small business where part of larger group. Using Basic Tool to submit outside of Xero can be cumbersome.

Also critical for our business, can anyone advise how they are managing this currently? The only option I foresee is to switch payroll providers which is a huge task when the functionality required is so simple.

We have just reached this threshold, and to not be able to remain compliant on payroll is not acceptable. Staffing costs are growing with changes to NMW/NLW, and other factors - come on Xero! Wake up and support your customers or you may start loosing them!

Our organisation has just reached the threshold, and it's frustrating to find we can't administer the apprenticeship levy through Xero payroll. We have little over 100 employees, with the big jumps in the NLW in the last couple of years this is going to become more and more relevant for small to medium sized organisations and Xero really need to be getting on board with this and adding the functionality to Xero Payroll.

Many customers have to abandon using xero payroll and potentially accounts when their company payroll exceeds £3m gross wages, because they need to stay compliant with reporting this tax and want a solution that is within the Xero product itself.
I cant imagine that this feature would be difficult to add, but enables a growing company to continue to use your product. Also I would argue that companys can still be very small when they reach the £3m gross wages mark,we had less than 60 employees.