The Apprenticeship Levy Explained

How to get the most from your levy funds


We’re experts – working with Levy paying organisations across the country 


We can work with you to make your investments produce tangible results 


We can help with the financial, legal, quality and compliance for apprenticeships

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What is the Apprenticeship Levy?

Introduced in April 2017, the Apprenticeship Levy is a tax on UK employers with a pay bill over £3 million each year; required to fund apprenticeships, support business productivity and grow quality vocational training and employment. 

Payments are made monthly to HMRC through the PAYE process and held in an Apprenticeship Service account and can be used for apprenticeship training and assessment for apprentices within your business.

Alternatively, businesses can transfer up to 25% of their Levy funds to support apprenticeship training in other organisations. 

Levy-paying employers must use the Apprenticeship Service to:

  • Manage their Levy funds
  • Manage their apprentices
  • Pay their training provider
  • Stop or pause payments to their training provider.

Manage your Levy funds

Complete the form below and we can help you with all aspects of managing your levy funds.

You can read more information about how Total People uses your personal information by reading our privacy policy here.

Spend Your Levy

The apprenticeship levy is charged at 0.5% of your annual pay bill. You can use HMRC’s Basic PAYE Tools to help you work out how much you need to pay.

For the first month of the tax year:

  • Divide your apprenticeship levy allowance by 12
  • Subtract this figure from 0.5% of your monthly pay bill.

For each of the following months:

  • Work out your total pay bill for the year to date
  • Add up your monthly levy allowances for the year to date
  • Subtract your levy allowance for the year to date from 0.5% of your total pay bill for the year to date
  • Subtract the amount of the levy you’ve paid in the year to date.

You can use these funds to upskill your team members through apprenticeships and training, recruit brand new apprentices, and use the funding to pay for End Point Assessments, the final stage that are conducted by independent organisations. 

The levy can be spent on a number of elements related to apprenticeships excluding travel costs, management costs, required licenses, wages or the cost of setting up the apprenticeship. 

Read our full guide – How to Spend your Apprenticeship Levy.

Across Total People, we have dedicated and highly equipped teams to ensure your business objectives are achieved in regards to apprenticeships and apprentice funding. 

Our teams include key account managers, recruitment and engagement officers, learning coaches and sector managers, all with years of expertise in designing and delivering apprenticeships for large Levy-paying employers.

We are ideally placed to offer impartial solutions to using your Apprenticeship Levy and can co-create training that aligns to your organisational needs.

We will help you:

  • Fully understand recent regulatory changes, along with the implications of these in spending your Apprenticeship Levy
  • Support you through these changes, guide you on planning so you know what to do
  • Explore the range of apprenticeships available, and how they can help your organisation achieve its aims through Levy funded apprenticeships
  • Receive the best possible training for your employees.

Our vision is to provide a complete training and recruitment package, adapting our apprenticeship training to meet your specific business needs.

Aligning to your business objectives, we work in partnership with you to develop your workforce and provide the skills your employees need to keep up with a globally competitive market.

Slides showing the apprenticeship levy process

Levy Gifting

If your levy funds have not been spent within 24 months, that money goes back to the government.

If your business is not in a position to take on a new apprentice, you can gift up to 25% of your Levy fund to support small businesses to hire apprentices. It’s a win-win situation - you can ensure your unspent Levy funds go to good use, and support business growth in SMEs at the same time. This is great for CSR and developing industry relationships (with no additional costs to do so).

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Case Studies

We work with businesses of all shapes and sizes, helping them to make the most of apprenticeships and work-based learning.

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Get in touch

Whether you’d like to know more about a specific apprenticeship or ask a question, we’re here to help.


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Here are some resources to help guide you as an employer.

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