This rapid read explains how to calculate the Apprenticeship Levy, which is based on your company’s annual payroll bill, including salaries, wages, bonuses, and commissions but excluding benefits in kind and National Insurance contributions. The levy is 0.5% of the annual payroll bill, minus a £15,000 allowance provided by the government. For example, with a £4 million payroll, the levy would be £19,925. The guide also details how to access and spend the levy funds, which are stored in a digital account and can be used for apprenticeship training and assessments. Unused funds expire after 24 months, emphasising the importance of active participation in apprenticeship programs.
