Apprenticeship Reform/Levy
Apprenticeship Levy - the Basics

Government state that from April 2017, all employers operating in the UK, with a pay bill of over £3m each year will be required to contribute to a new apprenticeship levy of 0.5%. Everyone is liable for the levy. There is a levy allowance of £15,000 per company. This means only employers with a pay bill of >£3m will actually have to pay.  If you are a group of connected companies the group will share one £15,000 allowance. 

If you are a company operating in Wales/Scotland/NI click here for information.

How will the Apprenticeship Levy affect your business - the basics

How do I calculate what I have to pay?
  • If your pay bill is £5,000,000
  • Levy - 0.5% x £5,000,000 = £25,000
  • Deduct your levy allowance
  • £25,000 - £15,000 = £10,000


How do I pay my levy?

The levy comes into effect from 6 April 2017

Each month you will have to:

-      Let HMRC know whether you need to pay the levy

-      Include the levy that you need to pay in your usual PAYE payment to HMRC by 19 (or 22 if you report electronically) of the following month

For guidance from HMRC on details for your finance team go to


Paying the Apprenticeship Levy - Size: 317Kb Download
Your Funds
  • Government will add a 10% top up to the funds in your digital account i.e. the funds you have available to spend on apprenticeship training in England
  • Funds in your account will expire 24 months after they enter your digital account
  • When payments are taken from your account, the service will automatically use the funds that entered your account first


Accessing your Digital Account - Size: 2536Kb Download
For more information please contact:
Max Walkington
Max Walkington
Head of Data and Compliance
You might also be interested in:
  • Apprenticeship Reform Webinar BPIF Programme Director, Ursula Daly, guides viewers through changes to apprenticeships including the Apprenticeship Levy, Funding, Standards and Trailblazers.
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