How does the Apprenticeship Levy work?

If you, as an employer, have to pay an annual wage bill of over £3 million, you will need to work out, report and pay a contribution to HMRC for the Apprenticeship Levy, through PAYE.

Doing so will give you access to the Apprenticeship Service Account, which means you can utilise the money you’ve paid in for training and development. This is in addition to a 10% contribution the government will make! There is also a £15,000 allowance for each tax year, which can be used to help with Levy payments, this works on a monthly basis and accumulates over a year.

Using your Apprenticeship Service Account you can also set approved providers to deliver your apprenticeships, training or development programs. After 2 years, any funds that are not used will be removed from your account, so it’s worth using everything you put in!

You may or may not be aware...

The apprenticeship levy requires all employers operating in the UK, with a pay bill over £3 million each year, to make an investment in apprenticeships 0.5% of their pay bill.

Your first funds will be available in your digital account around the 22nd May 2017 and the government have provided NEW information around how to calculate your levy pot.

So, what's next?

Seek advise from our levy experts to help support and develop your training strategy, simply call 0330 102 5637 or send an email to

Transfer of Levy Funds

If you are a levy paying employer you can now transfer 10% of your levy funds to other employers in England, including ATA’s, that wish to take on an apprentice from 1st May 2018. The amount of funds that can be transferred is calculated from the previous tax year (Period 12 Levy figure) and can only be used on the new Apprenticeship Standards. Levy paying employers can transfer to multiple employers, providing it doesn’t exceed the 10% cap but receiving employers can only receive 1 transfer from a levy paying employer.

The Apprenticeship Levy Calculator

How much will your organisation pay?

Please use the calculator below to work out how much you will need to pay into the Apprenticeship Levy.

Note: the Apprenticeship Levy is only applicable for a wage bill of £3,000,000 or above.

Levy Calculator

Please enter your Annual Wage Bill:
How much you pay into the funding pot:
If you’d like bespoke advice on how the Apprenticeship Levy will affect your organisation, or just have a quick question, simply contact our expert team today!