---
title: "What is the apprenticeship levy?"
slug: "what-is-the-apprenticeship-levy"
updated: 2026-06-10T11:24:59Z
published: 2026-06-10T11:24:59Z
canonical: "help.cintra.co.uk/what-is-the-apprenticeship-levy"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.cintra.co.uk/llms.txt
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# What is the apprenticeship levy?

The Apprenticeship Levy is a UK tax measure introduced in April 2017 to fund apprenticeship programs and to encourage employers to invest in apprenticeship training.

The key aspects of the Apprenticeship Levy are as follows:

1. **Levy Rate**: The levy is charged at a rate of 0.5% of an employer's total annual pay bill.
2. **Pay Bill Definition**: The pay bill includes all payments to employees that are subject to employer Class 1 secondary National Insurance Contributions (NICs), such as wages, bonuses, and commissions.
3. **Levy Allowance**: Every employer receives an annual levy allowance of £15,000, which is offset against the levy payment. This means the levy effectively applies to employers with a pay bill over £3 million each year, as the allowance covers the first £15,000 of the levy.
4. **Payment and Reporting**: Employers report and pay the levy to HMRC through the Pay As You Earn (PAYE) process alongside tax and National Insurance.
5. **Access to Funds**: Funds raised by the levy are accessible to employers in England through a digital service account. These funds can be used to pay for training and assessment of apprentices. The government applies a 10% top-up to the funds.
6. **Expiry of Funds**: Funds in the digital account expire 24 months after they enter the account if they are not spent on apprenticeship training.
7. **For Employers in Other UK Regions**: While the levy is a UK-wide tax, each of the UK nations manages its own apprenticeship programs. Scotland, Wales, and Northern Ireland have different arrangements for accessing and using levy funds.