Apprenticeship levy calculator
Enter your organisation's annual pay bill to calculate how much levy you pay each year, your government top-up, the monthly amount entering your Digital Apprenticeship Service account, and how much you have available to spend on training. Based on current ESFA levy rules.
Your levy breakdown
Annual levy payable
£0
Monthly levy payment
£0
Government top-up (10%)
£0
Total annual training budget
£0
Funds in DAS (incl. existing)
£0
Allowance per employer
Figures are directional estimates. The levy is reported and paid to HMRC monthly via PAYE. Consult your payroll provider or accountant for exact figures. Government top-up rates and levy rules are subject to policy change.
How the apprenticeship levy works
- Who pays: UK employers with an annual pay bill over £3 million. Employers below this threshold do not pay levy but can access apprenticeships through co-investment (employer pays 5%, government pays 95%).
- Rate: 0.5% of your annual pay bill, minus a £15,000 annual allowance. The allowance is shared between connected companies (same group, PAYE scheme, or business structure).
- Government top-up: For every £1 you pay in, the government adds 10p into your Digital Apprenticeship Service (DAS) account.
- Expiry: Levy funds expire 24 months after they enter your DAS account. Plan starts carefully to avoid losing funds.
- Transfers: You can transfer up to 25% of your annual levy funds to other employers (e.g. supply chain, sector partners) via the DAS.
- Growth and Skills Levy: From 2025, the levy is transitioning to the Growth and Skills Levy under Skills England, expanding eligible training types beyond apprenticeships.
Frequently asked questions
Who pays the apprenticeship levy?
UK employers with an annual pay bill over £3 million pay the levy. Employers below this threshold can still run apprenticeships — they pay 5% of training costs, the government pays 95%.
What is the government 10% top-up?
The government adds 10% on top of everything you pay into your DAS account. If you pay in £50,000 per year, your account holds £55,000 to spend on training.
How long do levy funds last?
24 months. Each monthly payment starts its own 24-month expiry clock. Unspent funds are returned to the government — so large levy payers should actively plan apprenticeship starts to maximise use of their pot.
Can I transfer levy to another employer?
Yes — up to 25% of your annual levy funds can be transferred to other employers via the DAS. This is commonly used by large employers to fund apprenticeships in their supply chain or by sector bodies to support SMEs.
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.