What is the government top-up on apprenticeship levy funds?

Funds entering an apprenticeship service account through 31 July 2026 receive the 10% government top-up. The top-up is removed from new funds entering accounts from 1 August 2026. This calculator changes the result according to the selected funding-entry period.

How long do apprenticeship levy funds last before they expire?

Funds entering an apprenticeship service account through 31 July 2026 retain their 24-month expiry. New funds entering from 1 August 2026 expire after 12 months. A mixed account can therefore contain monthly funds with different expiry dates.

Can employers transfer their levy to other organisations?

Yes. A levy-paying employer can transfer up to 50% of the relevant previous tax year's levy funds through the apprenticeship service. A valid transfer can cover eligible apprenticeship or approved-unit costs up to the applicable maximum; the receiving employer pays any amount above it.

Apprenticeship levy calculator

Q: Who pays the apprenticeship levy?

The levy is charged at 0.5% of an employer's annual pay bill, less its allocation of the £15,000 annual levy allowance. A single employer using the full allowance normally begins paying when its pay bill exceeds £3 million. Connected employers share one allowance. Non-levy apprenticeship funding depends on the learner's age and actual start date.

Estimate the levy you pay and the amount entering your apprenticeship service account. Select when the funds enter: new funds from 1 August 2026 no longer receive the 10% top-up and expire after 12 months.

Calculator inputs

Annual pay bill (£) Use earnings on which secondary Class 1 National Insurance contributions are due; do not add the employer NI contribution itself.

Levy allowance allocated to this employer (£) A single employer can use up to £15,000. Connected employers share one £15,000 allowance; enter this employer's actual allocation rather than dividing it automatically.

English percentage of levy funds (%) Estimate the proportion of the pay bill for employees living in England, used to calculate funds entering the account.

When do these funds enter the account?

Existing unspent funds in DAS account (£)

Your levy breakdown

Annual levy payable £0

Monthly levy payment £0

Government top-up for selected period £0

Estimated annual funds entering account £0

Funds in DAS (incl. existing) £0

Levy allowance allocated £15,000

Figures are estimates. Levy is reported and paid to HMRC monthly through PAYE; the account amount also depends on HMRC's English percentage calculation and monthly adjustments. Existing funds can have different top-up and expiry treatment. Confirm exact figures in your account and with payroll advisers.

How the apprenticeship levy works

Who pays: The charge is 0.5% of the annual pay bill, less the employer's levy allowance. A single employer using the full £15,000 allowance normally starts paying above a £3 million pay bill.
Connected employers: Connected employers share one £15,000 allowance and choose how to allocate it; an equal split should not be assumed.
Account funds: The apprenticeship service applies the English percentage to the levy paid. Funds entering through 31 July 2026 receive a 10% top-up; new funds from 1 August do not.
Expiry: Funds entering through 31 July 2026 retain a 24-month expiry. New funds entering from 1 August expire after 12 months.
Transfers: Up to 50% of the relevant previous tax year's levy funds can be transferred through the apprenticeship service.
Funding shortfalls: For full-apprenticeship starts from 1 August 2026, a levy employer with insufficient account funds pays 25% and government pays 75% of eligible shortfall costs, up to the funding band. The employer pays all above-band costs.

Frequently asked questions

Who pays the apprenticeship levy?

The levy is 0.5% of the annual pay bill, less the employer's allocation of the £15,000 allowance. For non-levy full-apprenticeship starts from 1 August 2026, eligible 16–24 starts are government-funded to the band; for learners aged 25+, the employer pays 5% and government pays 95%. Earlier starts follow their applicable rules, and the employer always pays above-band costs.

What is the government 10% top-up?

It applies to funds entering the account through 31 July 2026. The top-up is removed from new funds entering from 1 August 2026, which is why the calculator asks for the funding-entry period.

How long do levy funds last?

Funds entering through 31 July 2026 retain 24 months. New funds entering from 1 August 2026 expire after 12 months. Because funds enter monthly, an account can contain several expiry dates and both rule treatments.

Can I transfer levy to another employer?

Yes — up to 50% of the relevant previous tax year's levy funds can be transferred through the apprenticeship service. A valid transfer pays eligible training and assessment up to the applicable maximum; the receiving employer pays any amount above it.

Managing levy spend across a cohort?

TIQPlus gives employers and training providers live visibility of levy utilisation, programme progress, and funding band compliance — so your DAS account is always working as hard as it should be.

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