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Apprenticeship Levy

What is the apprenticeship levy?  How can you make it work for you?

Apprenticeship Levy

Answering the common questions about the Levy 

Levy Calculator

This calculator will give you an estimation only of the amount of levy your wage bill generates - there are exceptions and special allowances which are detailed further on this page.

Please enter your annual wage bill - Levy is only payable if this is over £3,000,000 

		

	

	

		
Potential Levy

		
		

			This is an indication of the amount of Levy that your organisation may be paying and be able to access for Apprenticeships.
		

		
		

			
Estimated Levy Amount 

		

		
		
			Need help with spending your levy or approaching the threshold? Click here.
		
		
        
	

	
	


























Is Your Business a Levy Payer?


Businesses with an annual wage bill over £3 million contribute 0.5% of their total wage bill to the Apprenticeship Levy.




       This calculation includes:


    

      

        

      • Wages
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      • Bonuses
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      • Commissions
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      • Pension contributions
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      • Other remuneration that incurs National Insurance contributions
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        The following is excluded from this calculation
      

    



    

      

        

      • of employees under the age of 16
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      • of employees who are not subject to UK National Insurance contributions legislation
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      • on which Class 1A National Insurance contributions are payable, such as benefits in kind
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For more information or to set up your Digital Apprenticeship Service Account


Visit the Government Website


https://www.gov.uk/guidance/pay-apprenticeship-levy
































Levy Allowance


Every business contributing to the Levy receives an annual £15,000 allowance from the government to offset their contribution.


Government Top-Up:

Each month, the government adds a 10% top-up to the funds in your Apprenticeship Levy account, increasing your training budget.


 


Digital Apprenticeship Service (DAS):


Contributions are managed through a Digital Apprenticeship Service (DAS) account. Your funds are converted into digital vouchers, which can be used to pay for apprenticeship training with registered providers.






















    






  



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How do you Spend or Maximise your funds?


Levy Funds can be a valuable resource if you know how to utilise them


























    






  



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Maximising your funds


Your Levy funds are a valuable resource for:


    

  • Recruiting New Talent: Bring in fresh perspectives and skills with new apprentices.
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  • Upskilling Existing Staff: Support your team’s professional growth and address skills gaps.
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Funds accumulate monthly and roll over if unused. However, they expire after 24 months, with unspent funds returned to the Treasury.


































Spending Levy


    

  • Funding Bands:
    Apprenticeships are divided into 15 funding bands, ranging from £1,500 to £27,000. These bands help businesses estimate the cost of training and allocate funds appropriately.
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With a clear understanding of funding bands, you can plan how many apprenticeships your Levy funds can support.


    

  • Pledging Unused Levy Funds:
    If you don’t spend your entire Levy, you can pledge unused funds to support smaller organisations in need of training support.
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For Businesses With a Wage Bill Under £3 Million


If your business doesn’t meet the £3 million threshold, you can still benefit from apprenticeship training through a co-investment model:


    

  • Contribute just 5% of the total apprenticeship cost.
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  • The government covers the remaining 95%.
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  • Need help with your 5% contribution? Contact us to explore available support options.
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Additional Incentives for Hiring Young Apprentices


Employers hiring apprentices aged 16-18 years are eligible for a £1,000 incentive to support their training, paid in two installments:


    

  • £500 after three months.
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  • £500 after twelve months.
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This incentive helps businesses foster young talent while supporting their career development.



































Apprenticeship Levy Transfer 
















If you're a small to medium-sized business seeking support for apprenticeship training, SEATS is here to help!


Through various Apprenticeship Levy Transfer Schemes, larger companies can pledge their unused levy funds to support smaller businesses. 


We work closely with this initiative in two key ways:


    

  •  Encouraging levy-paying businesses to transfer surplus funds to smaller, non-levy-paying organisations. 
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  • Helping smaller businesses access these funds, ensuring apprenticeship training costs are fully covered. This means your apprentice’s training can be funded entirely through levy transfers - at no cost to your business.
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SEATS actively seek opportunities for supporting your apprentice


This may be localised or national schemes, support financially or pastorally - ask for details