Calculating the apprenticeship levy

Apprenticeship Levy Calculator

Reclaim your levy and upskill your existing team with support from Pareto.

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What is the Apprenticeship Levy?

The apprenticeship levy scheme is a tax introduced to help companies offer more apprenticeships. It was initially put in place in 2017 to encourage businesses to develop their employees with apprenticeship training. 

How does the apprenticeship levy scheme work?


In the UK, if you have an annual wage bill of £3m or over, you will pay 0.5% of your annual wage bill towards the apprenticeship levy. By doing so, you will be entitled to a Levy Allowance of £15,000. The government will then top up this amount by 10% and place this into your digital account, ready for you to invest in apprenticeship training. This money is stored in your HMRC digital account until your business spends it on an apprenticeship programme; otherwise, it will expire after 24 months. 

Suppose your wage bill is not high enough to pay the Apprenticeship Levy, or you've already spent your allocation. In that case, you are still entitled to at least 95% government funding for any apprenticeship course you enrol your employees on. 

Find out how much funding you could be entitled to

As the UK's leading training provider, we know how to make the most of your apprenticeship levy allowance. From levy contributions to employment payment summary, you can work out the amount of apprenticeship levy you're entitled to with the apprenticeship levy monthly calculator. So if you need clarification on what you're looking for, scroll to use our levy calculator or get in touch, and our team can show you an apprenticeship levy calculation example.


Find out your available funds

Apprenticeship Levy Calculator

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Your organisation's annual UK payroll


The Apprenticeship Levy scheme can empower your business

As a registered apprenticeship training provider (ROATP), we are qualified to deliver a multitude of apprenticeship courses to a diverse set of candidates. As the UK market leader in training, we are always determined to maintain a high standard in providing exciting, dynamic programmes for the apprentices we work with.

of business leaders think the Apprenticeship Levy is positive for business.
of business leaders think the Apprenticeship Levy will boost productivity.

The top three priorities for investment

Retain talent

Not only does employing apprentices improve employee retention, apprentices are likely to stay and work for the company that provided them with the training when they complete their apprenticeship.

Upskill team

Apprenticeships are one of the most effective ways to upskill your workforce. They can help to improve your employees’ skills, allowing them to become more effective within their job roles.

Improve digital skills

By doing an apprenticeship, your staff will gain an understanding for the latest technologies and develop their digital skills, allowing you to narrow your digital skills gap and future proof your business.

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Want to invest in apprenticeships?

Get in touch today if you need help using our apprenticeship levy calculator.

And if you're ready to take on an apprentice or upskill your existing team, we can support you.

Complete the form to request a callback, or you can speak to our Apprenticeship team directly at 03714 543 497.