What is the Apprenticeship Levy?

The Apprenticeship Levy is a tax applied to UK employers to fund apprenticeship training. Any organisation with an annual salary bill above £3 million in England will pay a monthly sum into their Apprenticeship Levy fund. This is a ringfenced pot that your business can use to grow and develop your team through apprenticeships.

The Apprenticeship Levy is charged at a rate of 0.5% of your salary bill over the £3m annual threshold. Less than 2% of all UK employers pay into the levy.

Use our Levy Calculator tool below to estimate your available apprenticeship levy funds.

Apprenticeship Levy FAQs


Use the Apprenticeship Levy calculator to get a sense of cost and available funds, complete the two input boxes below to start assessing the impact.

This is the overall salary for all staff operating in the UK, covering all items subject to Class 1 Employer National Insurance Contributions.
Please provide an estimate percentage of your UK workforce living in England.
Total Levy
Your overall levy is calculated at 0.5% of your annual salary bill.
Levy Allowance
Every employer is entitled to a £15,000 allowance. Groups and connected companies will only get one allowance of £15,000 to be allocated before the start of the financial year
Total payable
The amount you are estimated to pay across the year
Amount in digital account
The Levy that appears in your digital account reflects the percentage of your workforce living in England. If you have 50% of your workforce living in England, only 50% will appear in your digital account.
10% top up
Government provides a 10% top-up on levy funds, based on the amount entering your digital account.
Total to invest in apprenticeship training
Total levy funds available to invest in apprentice training and assessment.

How many apprentices would I need to draw down my funding?*

Apprenticeships with an average cost of £15,000

*The calculation is purely indicative. It is based on an assumption of an average of cost for training and assessment per apprenticeship for the duration of their course. The actual number of apprentices required will vary depending on the specific apprenticeship Frameworks or Standards and the actual price you agree for training and assessment with providers.

Please fill out your details below and an advisor will get in touch with you shortly.

How Can You Spend Apprenticeship Levy Funds?

You can spend your Apprenticeship Levy funds on training and assessment costs for new apprentices, or for professional development apprenticeship courses for your existing employees.

Apprenticeships are an effective way to futureproof your workforce, bridging skills gaps at all levels, from junior employees right up to senior leadership programmes.

If you don't use your Apprenticeship Levy, you will lose your funds. Apprenticeship Levy contributions expire after two years and are claimed by the treasury. To control how your unused funds are used, you can arrange an Apprenticeship Levy Transfer to support another organisation, including charities and SMEs.
Levy Guide:

Making the Most of Your Apprenticeship Levy

Read our strategic guide and maximise the potential of your apprenticeship levy funds.
Levy Guide

How to Transfer Your Apprenticeship Levy Funds

Your step-by-step guide to transferring excess apprenticeship funding.
More Resources:

Apprenticeship Funding for Small Businesses

No levy? No problem. Find out what apprenticeship funding is available for your organisation.

Ask About Apprenticeships