Levy Payers

The levy will be different for all employers because it is calculated as 0.5% of their annual wage bill. However, every employer will receive an allowance of £15,000 which can be offset against their levy amount. Here are some examples:

Example one

Employer has annual wage bill of £5million
Levy sum: 0.5% x £5,000,000 = £25,000
Allowance: £25,000 – £15,000 = £10,000 annual levy, to be divided into monthly instalments

Example two

Employer has annual wage bill of £9million
Levy sum: 0.5% x £9,000,000 = £45,000
Allowance: £45,000 – £15,000 = £30,000 annual levy, to be divided into monthly instalments

Example three

Employer has annual wage bill of £2.5million
Levy sum: 0.5% x £2,500,000 = £12,500
Allowance: £12,500 – £15,000 = –£2,500 This means no levy is payable

The effect of subtracting the £15,000 allowance means employers with a wage bill of less than £3million would have a levy of £0 or less, so would not have to pay one.

Apprenticeship Levy

Levy Calculator

Use the government levy calulator to see how it affects you.

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