Levy – Calculate what you owe

Apprenticeship Levy is charged at 0.5% of your annual pay bill.

You can use HMRC’s Basic PAYE Tools to help you work out how much you need to pay.

For the first month of the tax year:

  1. Divide your Apprenticeship Levy allowance by 12.
  2. Subtract this figure from 0.5% of your monthly pay bill.

For each of the following months:

  1. Calculate your total pay bill for the year to date.
  2. Add up your monthly levy allowances for the year to date.
  3. Subtract your levy allowance for the year to date from 0.5% of your total pay bill for the year to date.
  4. Subtract the amount of the levy you’ve paid in the year to date.

If you begin paying the levy part way through the tax year, you’ll need to calculate how much of your annual allowance has been accumulated in the current year. Divide your full annual allowance by 12 and multiply by the number of months since the start of the tax year. This figure is your allowance for the first month you report the levy.

Any unused allowance can be carried forward into the next month within the same tax year.

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