Apprenticeship levy calculator

If you’re keen to introduce apprenticeships or additional training to your business, the apprenticeship levy provides a valuable opportunity to do so. With our simple levy calculator you can work out how much levy funding you’ll have to put towards apprenticeships in your business. We talk you through our apprenticeship levy forecasting tool and explain how we can help you with the larger and more complex task of ongoing levy calculation for your business.

Enter your total payroll amount as an employer to understand if you are levied or non-levied. If your levy calculation is £0, there are funding options available to non-levied employers. Find out more on our apprenticeship levy page.

Use our simple apprenticeship levy calculator to understand how much levy you may be charged.

Enter your total payroll amount as an employer to understand if you are levied or non-levied.

If your levy calculation is £0, there are funding options available to non-levied employers.

£

Your levy amount

£0

Estimate your apprenticeship funding

The apprenticeship levy was introduced in 2017 to enable companies to be able to offer more apprenticeships. As a form of taxation, it ensures companies set aside funds that are benchmarked for apprenticeships only.

If you have a payroll of more than £3million you’re taxed at a rate of 0.5% and this is offset by the government with an annual apprenticeship allowance of £15K. You pay the difference and the government top-up this amount by 10% which goes straight into your digital apprenticeship account for investment in apprenticeship training.

Apprenticeship Levy Calculation: how do I work out my apprenticeship levy?

You might be wondering exactly how you calculate your levy and how it is worked out. Your apprenticeship levy payment is 0.5% of your annual wage bill minus the government’s allowance of £15K.  The funds that you receive into your digital account for spending on apprenticeships will equal your ‘levy payment’ plus the 10% top-up applied by the government.

We have many years of experience advising large and small businesses (both levy-paying and non-levy paying) around what sort of funding they’re entitled to receive for apprenticeships.

Apprenticeship levy calculation examples

Based on real-life cases, we’ve included some apprenticeship levy calculation examples below using our levy calculation formula:

For a Large Employer with a Payroll Bill of 200,000,000 their levy total would be:

£200,000,000 x 0.5% - £15,000 allowance = £985,000

For a smaller employer with a Payroll Bill of £18,000,000 their levy total would be:

£18,000,000 x 0.5% - £15,000 allowance = £75,000

It’s important to note that these funds expire (and default to the government) after 24 months, so it’s advisable to use them where you can. After all, the majority of these funds are made up of a tax your business has paid and set aside.

If you’re struggling to use it, there are solutions around this and we can help advise you how best to use these funds. For example, you could transfer 25% of the total to another non-levy paying business (link to levy transfer page when live). In contrast, if you use up all of your levy funds and need more, you’re also entitled to receive additional government support. If you are a non-levied company, levy funding is also open to you too. You can part-fund apprenticeships with a 95% government contribution. Find out more on our apprenticeship levy page.

Lifetime Training levy calculator forecasting tool

Lifetime Training has developed a bespoke tool to provide a detailed forecast of your levy spend over a five-year period. The tool was developed by the Lifetime Finance Team, and considers incremental pay increases, learner fluctuations, and funding incentives to plot client levy usage over five years.

This insight is vital for ensuring a proper return on investment on your apprenticeship levy spend and is just one part of the expert service provided by Lifetime.

 With many years of experience, we have the tools needed to support your success.

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