Is this calculator updated for the 2026/27 tax year?

Yes, all calculators are fully updated with the latest HMRC thresholds, personal allowances, and National Insurance rates for 2026/27.

Can I use this for official tax submissions?

These tools are for estimation and illustrative purposes only. For official tax returns, please consult a qualified accountant or reference HMRC directly.

Apprenticeship Levy Calculator UK (2026/27): £3m+ Payroll Tax & Funds

Apprenticeship Levy Calculator

✓ Verified for 2026/27

Payroll Information

Gross Annual UK Payroll

Levy Allowance Allocated

HMRC English Fraction (%) Percent of staff living in England

Planned Apprentice Training Costs Optional course budget

Net Annual Levy Due

£10,000

payable to HMRC

Digital Account Fund

£11,000

incl. 10% government top-up

Govt Training Subsidy

£9,000

covered by levy/funding

Employer Share Cost

£0

5% co-investment fee

Apprenticeship Levy Summary

Gross Annual Payroll £5,000,000

Net Levy Due £10,000

Digital Training Fund (England) £11,000

Devolved Governments Share £0

Employer Final Training Cost £0

Govt Funded 100%

Employer Paid 0%

ℹ️ The Apprenticeship Levy is a 0.5% tax on UK employers with an annual paybill over £3 million. Each employer gets an annual allowance of £15,000 to offset against their levy payment.

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Verified for Accuracy (2026/27 Tax Year)

Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.

How We Calculated This

Input variables: Enter the relevant amounts, rates, or percentages in the form.
Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.

Real-World Examples

Standard Scenario

A basic calculation applying standard UK tax bands and allowances.

Calculation runs based on standard HMRC rules.

With Pension or Deductions

Factoring in a percentage of salary sacrifice or pension contributions.

Deductions are calculated and adjusted accordingly.

Related Calculators

Frequently Asked Questions

What is the Apprenticeship Levy and who pays it?

The Apprenticeship Levy is a UK government tax designed to fund new apprenticeships. It applies to employers with an annual pay bill of more than £3 million. The levy is charged at a flat rate of 0.5% of the employer’s total annual pay bill, calculated on earnings subject to Class 1 secondary NI contributions.

How is the Apprenticeship Levy allowance applied?

Employers receive a statutory annual allowance of £15,000 to offset against their levy bill. This allowance is allocated monthly (£1,250 per month) throughout the tax year. This means only employers with an annual payroll exceeding £3,000,000 pay the levy (0.5% of £3,000,000 is £15,000, which is fully offset by the allowance).

How do employers access and use their levy funds?

Levy payments are declared monthly via RTI payroll and sent to a digital apprenticeship service account. The government adds a 10% top-up. These funds can only be spent on approved apprenticeship training and assessment providers in England; they cannot be used to pay apprentice salaries, travel, or administrative costs. Funds expire after 24 months if left unspent.