UK · Employer costs · 2026–27
Apprenticeship Levy calculator.
Annual levy from your pay bill: 0.5% less the £15,000 allowance, payable where the pay bill is over £3 million.
Your figures
Levy due
Enter your pay bill to see the levy.
How is the Apprenticeship Levy calculated?
GOV.UK says the levy is 0.5% of your annual pay bill, and you must pay it monthly if the annual pay bill, counting connected companies and charities, is more than £3 million. The pay bill covers all payments to employees that are subject to employer Class 1 National Insurance, such as wages, bonuses and commission. A £15,000 allowance, shared across connected employers, reduces the amount you pay across the year.
Worked example. A £5,000,000 pay bill: 0.5% is £25,000, less the £15,000 allowance, leaves £10,000 for the year, about £833 a month.
Payment is actually made month by month on a year-to-date basis. This tool shows the yearly total and an even monthly average.
Frequently asked questions
What is the Apprenticeship Levy rate?
GOV.UK gives 0.5% of an employer’s annual pay bill, with a £15,000 allowance across the year.
Do I pay the levy if my pay bill is under £3 million?
GOV.UK says you must pay it if your annual pay bill, including connected companies or charities, is more than £3 million. Below that, no levy is due.
What counts as pay bill?
All payments to employees subject to employer Class 1 National Insurance, including wages, bonuses and commissions.
How do connected companies share the allowance?
GOV.UK says connected companies or charities share one allowance and you must report how you divided it. This tool takes the whole group’s pay bill and a single allowance.
Sources
Checked
Figures are for the UK 2026 to 2027 tax year unless stated. Runs entirely in your browser. Nothing you type is sent or stored.
Scope
Monthly payment is based on year-to-date figures and may differ from the even average shown. General information, not legal, tax or payroll advice. GOV.UK, HMRC and your payroll provider are authoritative.