Answers · UK 2025/26
What is the Apprenticeship Levy rate in 2026?
The Apprenticeship Levy is 0.5% of your annual pay bill if it exceeds £3 million, minus an allowance of £15,000 per employer. Funds are credited to your digital apprenticeship service account and can only be used to pay for apprenticeship training. Unspent funds expire after 24 months.
Full answer
The Apprenticeship Levy is charged at 0.5% of your annual wage bill (total gross pay before deductions) if your wage bill exceeds £3 million. You receive an annual Apprenticeship Levy allowance of £15,000, which reduces the amount you pay. Example: wage bill of £5 million × 0.5% = £25,000 minus £15,000 allowance = £10,000 levy to pay per year. The levy is paid monthly through PAYE and credited to your digital apprenticeship service account with a 10% government top-up. Funds can only be used to pay approved training providers for apprenticeship training. Any unspent funds expire after 24 months. Connected employers (such as subsidiaries in the same group) share one £15,000 allowance. Levy-paying employers can transfer up to 50% of their annual levy funds to smaller companies in their supply chains to fund apprenticeships.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.