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Apprenticeship Levy Calculator 2024/25

Calculate your annual Apprenticeship Levy liability, monthly digital account top-up (including the 10% government bonus), available training funds, and employer contributions. Works for both levy-paying employers (payroll over £3M) and non-levy employers accessing government co-investment.

Apprenticeship Levy Calculator

2024/25 — Levy = 0.5% × payroll − £15,000 allowance | +10% government bonus

Total annual wage bill for all UK employees — used to calculate your levy liability

How many apprentices you plan to hire (0–50)

Maximum training cost funded — choose the closest band for your apprenticeship standard

16–18 apprentices attract full government funding of training costs and a £1,000 employer incentive

5 Apprenticeship Levy Tips

  1. Unspent levy funds expire after 24 months: Use your digital account to plan apprenticeship starts and avoid money going back to HMRC. Review your levy balance quarterly.
  2. Transfer up to 25% to your supply chain: Levy-paying employers can transfer up to a quarter of their annual levy pot to smaller businesses — a powerful way to support apprenticeships across your sector.
  3. £1,000 incentive for 16–18 apprentices: All employers receive a £1,000 government incentive payment for each apprentice aged 16–18, paid in two instalments. Government also pays the full training cost for this age group.
  4. End-point assessment (EPA) is not in the funding band: EPA costs are separate from and not covered by the training funding band cap — budget for these separately when planning costs.
  5. Manage everything online: The apprenticeship service account at apprenticeships.education.gov.uk lets you view your levy balance, approve payments to training providers, and manage all apprenticeship contracts in one place.

How the Apprenticeship Levy Works

The Apprenticeship Levy is collected monthly by HMRC via PAYE. Employers with an annual payroll above £3 million pay 0.5% of their payroll, less a £15,000 annual allowance (£1,250/month). Funds are automatically credited to a digital apprenticeship service account, with the government adding a 10% top-up. Funds must be spent within 24 months or they expire.

Funding Bands

Each apprenticeship standard is assigned a funding band cap — the maximum amount of training cost that can be funded from the levy or government co-investment. The caps range from £1,500 to £27,000 depending on the apprenticeship level and sector.

Employer Contributions

  • Levy payers: Training costs deducted from levy account (no extra payment)
  • Non-levy payers (19+ apprentices): Employer pays 5%, government pays 95%
  • 16–18 apprentices: Government funds full training cost for all employers