UK Tools

UK Apprenticeship Levy Calculator

Enter your annual pay bill to estimate your Apprenticeship Levy contribution, the 10% government top-up, and the funds you can spend through your digital apprenticeship service account.

£

Total earnings on which Class 1 secondary National Insurance contributions are payable.

Gross levy (0.5%)

£25,000

£15,000 allowance offset

− £15,000

Annual levy paid

£10,000

10% government top-up

+ £1,000

Total funds in digital account / year

£11,000

Monthly digital account credit

£917

Estimates only — based on 2026 published rates. Each monthly deposit expires 24 months after entering the account on a rolling first-in, first-out basis. Treat unspent funds as a real cost line.

How the Apprenticeship Levy works

UK employers with an annual pay bill above £3 million pay an Apprenticeship Levy of 0.5% on the portion above the £3m threshold. The Levy is collected monthly through PAYE alongside Income Tax and National Insurance, and credited into a digital apprenticeship service account with a 10% government top-up. Funds must be spent within 24 months of entering the account or they expire.

For deeper context see the resource article on the UK Apprenticeship Levy.

What this calculator does not cover

  • Connected-company group calculations (one shared £15,000 allowance)
  • Co-investment funding for non-levy employers (95% government, 5% employer)
  • Levy transfer to other employers (up to 50% of annual allowance)

For complex group structures, refer to the official HMRC guidance on gov.uk.