For employers who pay the Apprenticeship Levy
Employers with an annual pay bill exceeding £3 million pay the Apprenticeship Levy. Payments are collected monthly through PAYE, with a levy of 0.5% payable on the portion of the pay bill above £3 million.
For employers who do not pay the Apprenticeship Levy
For new apprenticeships starting on or after 1 August 2026, employers who do not pay the Apprenticeship Levy can receive 100% funding for eligible apprentices aged 16–24 at the start of their apprenticeship. This covers training and assessment costs up to the apprenticeship’s funding band maximum.
Levy transfers to fund apprenticeship costs
Employers can also receive a levy transfer from another business to cover 100% of eligible apprenticeship training and assessment costs, up to the funding band maximum. Businesses of any size can search the government portal for levy transfer opportunities.