Employer Levy Account Management: August 2026 Top-Up, Expiry and Funding Rules

Last reviewed: 15 July 2026 against the published 2026 to 2027 funding rules and employer guidance.

Start with the levy calculation

The apprenticeship levy is 0.5% of the annual pay bill, less the employer's allocation of the £15,000 annual allowance. The pay bill uses earnings on which secondary Class 1 National Insurance contributions are due. Connected employers share one allowance and should use the allocation actually made, not assume an equal split.

Levy due is reported through PAYE. The amount entering an English apprenticeship service account also depends on the English percentage calculated from workforce data. This is why an HMRC levy charge and account inflow are related but not always identical.

What the account can pay for

Available account funds can pay eligible training and assessment for an approved full apprenticeship or an approved apprenticeship unit, subject to learner, employer, provider and product rules. They do not pay wages, normal business costs or the agreed price above the applicable funding band or unit maximum.

A visible balance is not the same as uncommitted budget. Existing learners create future monthly drawdowns, older funds may expire and planned starts may not yet be approved. Account planning needs the transaction view plus a delivery forecast.

The August 2026 top-up and expiry transition

Funds arrive monthly, so the transition produces a mixed account. Use the service's actual transaction and expiry data. Do not reset older funds to 12 months or add 10% to a post-August forecast.

Build a month-by-month account forecast

A useful forecast separates:

• current funds by entry and expiry date;
• expected monthly inflow after the English percentage and applicable top-up;
• approved learners and expected monthly drawdown;
• planned starts, product/version, price and approval date;
• above-maximum employer payments;
• planned transfer commitments; and
• the month in which the account could become insufficient.

Run scenarios for delayed starts, learner withdrawals and price changes. An annual total can hide the point at which an otherwise affordable cohort crosses into co-investment.

Apply the right rule when funds are insufficient

Funding shares attach to the learner's actual start date. For a full-apprenticeship start from 1 August 2026:

• a levy payer with insufficient account funds pays 25% and government pays 75% of the eligible shortfall;
• a non-levy employer with an apprentice aged 25 or over pays 5% and government pays 95%; and
• an eligible non-levy employer's apprentice aged 16 to 24 is government-funded up to the band.

Every employer pays the full price above the funding band maximum. Earlier starts normally remain on the rules in force at their start, subject to published exceptions. Keep the above-band amount separate from co-investment.

Approved units and levy transfers

Units have their own funding rules. For eligible unit starts from April to 31 July 2026, a non-levy employer is government-funded up to the unit maximum; a levy employer uses available account funds and, if those are insufficient, pays 5% while government pays 95% of the eligible shortfall. Check the rules for unit starts from August rather than carrying that split forward.

A levy payer can also transfer up to 50% of the relevant previous tax year's levy funds. A valid transfer can pay an eligible full apprenticeship or approved unit up to its maximum. The receiving employer pays above the maximum. Use the levy transfer guide for the approval workflow.

Provider account-management checklist

• Confirm the employer's permission and account contacts
• Use the actual allowance allocation and English percentage
• Separate funds entering through July from those entering from August
• Remove the 10% top-up from new post-August inflow
• Track expiry and committed drawdown by month
• Record exact product, version, start date, price and funding maximum
• Segment planned starts by levy status, available funds and learner age
• Show above-maximum costs separately
• Reconcile employer approvals and provider records before funding validation
• Reforecast after starts, breaks, withdrawals or transfer changes

The practical goal is not to spend the account at any cost. It is to fund genuine skills needs with eligible products while giving the employer an accurate view of timing, contribution and risk.