Apprenticeship Levy Calculator — UK Employer Tax Estimator
Instantly estimate your UK employer Apprenticeship Levy obligations. Factor in your total annual pay bill and connected company allowances for accurate 2025/26 tax year planning.
Single Employer or Connected Companies?
Select your business structure. A single employer gets the full £15,000 annual allowance, while connected companies must share this allowance equally.
Single Employer Levy Calculator
Calculate your apprenticeship levy with the full allowance
Total employee earnings subject to Class 1 secondary NICs
Levy Estimation Result
Annual and monthly apprenticeship levy breakdown
Enter your annual pay bill, then click Calculate Levy.
Connected Companies Levy Calculator
Calculate levy when sharing the allowance across a group
This company’s individual annual pay bill
Total companies in the group sharing the £15,000 allowance
Levy Estimation Result
Annual and monthly apprenticeship levy breakdown
Enter your details, then click Calculate Levy.
Apprenticeship Levy Key Facts
Essential rules and thresholds for the UK Apprenticeship Levy. Always verify with the latest HMRC guidance or your payroll provider.
| Parameter | Value | Notes |
|---|---|---|
| Levy Rate | 0.5% | Applied to the total annual pay bill |
| Annual Allowance | £15,000 | Offset against the levy. Shared among connected companies. |
| Pay Bill Threshold | £3,000,000 | Employers below this pay bill generally owe £0 levy. |
| Payment Method | Monthly (PAYE) | Paid via the Employer Payment Summary (EPS) to HMRC. |
| Tax Year | 6 April – 5 April | Levy is calculated on a cumulative basis throughout the year. |
| Fund Expiry | 24 months | Unspent levy funds in the digital account expire after 24 months. |
Apprenticeship Levy FAQ
Everything UK employers and payroll professionals ask about the apprenticeship levy.
The Apprenticeship Levy is a UK tax introduced in 2017 to fund apprenticeship training. It is charged at a rate of 0.5% on an employer’s total annual pay bill, with an annual allowance of £15,000 to offset against the levy.
Employers in the UK with an annual pay bill of more than £3 million must pay the Apprenticeship Levy. All employers, regardless of size, can access the digital apprenticeship service to fund training.
If two or more companies are connected (e.g., under common control or part of the same group), they must share the single £15,000 annual allowance. The allowance is divided equally among the connected companies unless agreed otherwise, but the total cannot exceed £15,000.
The levy is paid monthly to HMRC through the Employer Payment Summary (EPS) as part of the normal PAYE process. It is calculated on a cumulative basis throughout the tax year (6 April to 5 April).
The pay bill includes total employee earnings subject to Class 1 secondary National Insurance Contributions (NICs). This encompasses salaries, wages, bonuses, commissions, and pension contributions, but excludes benefits in kind.