Apprenticeship Levy
Calculate the UK Apprenticeship Levy: 0.5% of the pay bill, less the £15,000 annual allowance.
Data verified · May 2026
Does my business have to pay the Apprenticeship Levy?
In practice, only if your annual pay bill exceeds £3m. The £15,000 levy allowance fully offsets the 0.5% charge on a £3m pay bill, so smaller employers owe nothing — the calculator tells you whether you are liable.
Source: Finance Act 2016 Part 6 ; HMRC. · updated 2026
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Everything about Apprenticeship Levy
📋Overview+
Calculates the Apprenticeship Levy payable by employers: 0.5% of the annual pay bill (earnings subject to Class 1 secondary NIC), reduced by the £15,000 annual levy allowance. In practice only employers with a pay bill above £3m pay the levy.
📖User guide+
How to use this calculator
- 1
Enter the annual pay bill.
- 2
Read whether you are liable and the levy due.
📚Glossary+
- Levy allowance
- £15,000 annual allowance offsetting the 0.5% levy (equivalent to a £3m pay bill).
ℹ️Sources & updates+
Last data update
May 21, 2026
Sources and references
Finance Act 2016 Part 6 ; HMRC.
The data in this calculator is updated regularly to reflect the latest official rates. When in doubt, consult the official sources listed above.
FAQ — Apprenticeship Levy
Does my business have to pay the Apprenticeship Levy?+
In practice, only if your annual pay bill exceeds £3m. The £15,000 levy allowance fully offsets the 0.5% charge on a £3m pay bill, so smaller employers owe nothing — the calculator tells you whether you are liable.
How is the Apprenticeship Levy worked out?+
Take 0.5% of the annual pay bill, then deduct the £15,000 annual levy allowance. Whatever remains is the levy due for the year.
What counts as the pay bill for the levy?+
The earnings subject to employer Class 1 secondary NIC. Enter that annual figure and the calculator applies the 0.5% rate and the allowance for you.