The Apprenticeship Levy is a payroll tax charged on employers with an annual pay bill above £3 million. It funds apprenticeship training and is charged at 0.5% of the pay bill, less an annual allowance.
Using the levy funds
Levy funds are held in a digital account and can be used to pay for approved training through registered providers. Unused funds expire after 24 months, and non-levy-paying employers can still access government-funded apprenticeship support.
Tax rules depend on individual circumstances and can change. This glossary is general information rather than personalised tax advice.