Apprenticeship Levy Calculator
Calculate apprenticeship levy at 0.5% of pay bill over £3M. See government top-up and total training fund.
Last updated: April 2026 · Source: GOV.UK – Pay Apprenticeship Levy
Levy applies if pay bill exceeds £3M
Annual Levy
£5,000.00
+ Govt Top-Up (10%)
£500.00
Training Fund
£5,500.00
Levy: 0.5% of pay bill minus £15,000 allowance. Funds go into your Digital Apprenticeship Service account. Use within 24 months or funds expire. Government adds 10% top-up. Can transfer up to 50% to supply chain partners.
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
The Apprenticeship Levy is charged at 0.5% of an employer's total annual pay bill, which includes all earnings subject to Class 1 secondary National Insurance contributions—salaries, wages, bonuses, and commissions. Every employer receives a £15,000 annual allowance that offsets the levy, meaning only employers with a pay bill exceeding £3,000,000 per year face an actual payment. The levy is calculated and paid monthly through PAYE alongside other payroll deductions.
Each month, you calculate 0.5% of your monthly pay bill and then subtract one-twelfth of the £15,000 annual allowance (£1,250 per month). If the result is negative, no levy is due for that month. Connected employers (companies linked by common ownership) must share the single £15,000 allowance between them, allocated at the start of the tax year via a declaration to HMRC.
Levy payments are converted into digital funds in your Apprenticeship Service account, topped up by 10% by the government. These funds can only be spent on approved apprenticeship training and assessment with registered providers. Unspent funds expire 24 months after they appear in the account, so timely planning of apprenticeship starts is important.
Monthly levy for an employer with a £5M annual pay bill
- Annual pay bill: £5,000,000.
- Monthly pay bill: £5,000,000 ÷ 12 = £416,667.
- 0.5% levy on monthly pay bill: £416,667 × 0.005 = £2,083.33.
- Subtract monthly allowance: £2,083.33 − £1,250 = £833.33 due to HMRC.
- Annual levy payable: £833.33 × 12 = £10,000. Plus 10% government top-up gives £11,000 in your apprenticeship account.
Source: GOV.UK – Pay Apprenticeship Levy
Frequently Asked Questions
- What does the Apprenticeship Levy Calculator do?
- Calculate apprenticeship levy at 0.5% of pay bill over £3M. See government top-up and total training fund. All calculations are performed in your browser using official UK rates and thresholds.
- Is this suitable for my business?
- This calculator provides general estimates based on standard UK business rates and rules. Every business is different — consult your accountant for advice specific to your circumstances.
- Does this use 2025/26 tax rates?
- Yes. All rates and thresholds are based on the current 2025/26 UK tax year. Corporation Tax main rate is 25% for profits over £250,000, with a 19% small profits rate.