Levy Costs

What will the Apprenticeship Levy Cost?

Working out how much the Apprenticeship Levy will cost your organisation is actually quite complex.

The basic calculation is 0.5% of any PAYE bill above £3m, offset by a £15,000 allowance:

  • An organisation with a total PAYE bill of £3m will pay nothing (the £15,000 due is cancelled by the £15,000 allowance).
  • An organisation with a total PAYE bill of £10m will pay £35,000 (£50,000 minus the £15,000 allowance).
  • An organisation with a total PAYE bill of £20m will pay £85,000 (£100,000 minus the £15,000 allowance).

However, the funding of apprenticeships is variable and complex, and additional allowances are available. Apprenticeship training costs are banded from £1500 to £27,000, so the number of apprentices that your apprenticeship levy will fund is variable (see the full range of bands here). It depends on the apprenticeships that you want them to train towards.

A free assessment of what the Levy will cost you and how to get more funding

If you would like us to prepare an estimate of what we think the Apprenticeship Levy will cost your organisation and model what you would need to do to both recoup your funds and maximise additional cash inputs to your business from Government, please contact us about a free cost check.

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