Levy Management
Apprenticeship Levy
Maximise your apprenticeship levy investment. Learn how to manage your funds, develop your workforce, and transfer unused levy to support businesses in your supply chain.
Watch: Understanding the Apprenticeship Levy
A quick guide to how the levy works and how to make the most of your funds.
What is the Apprenticeship Levy?
The Apprenticeship Levy is a UK tax introduced in April 2017 and now part of the government's Growth and Skills Levy. Employers with an annual pay bill over £3 million pay 0.5% of their pay bill, less a £15,000 allowance, through PAYE each month. In England, those funds go into your apprenticeship service account.
The funds can only be spent on apprenticeship training and assessment, and on apprenticeship units, with approved providers. The levy is a significant opportunity to develop your workforce at reduced cost, but from August 2026 new funds expire after 12 months if not used, and the government no longer adds a 10% top-up.
Many large employers fail to utilise their full levy pot, missing valuable opportunities to upskill staff or support their supply chain through levy transfers.
Quick Levy Calculator
Example calculation. Your actual levy depends on your total pay bill and any connected companies. The funds available in England are your levy multiplied by the share of your pay bill paid to employees living in England.
Make Your Levy Work Harder
Don't let your levy funds expire unused. Here's how apprenticeships deliver real value for your organisation.
Develop Your Workforce
Use levy funds to upskill existing employees or train new recruits with nationally recognised qualifications.
Boost Productivity
Apprentices trained to your specific business needs deliver measurable improvements in performance and efficiency.
Transfer Unused Funds
Transfer up to 50% of the previous year's levy funds to other employers, including SMEs in your supply chain or sector.
Future-Proof Skills
Access apprenticeships from Level 3 to Level 5 across marketing, HR, leadership and professional pathways.
Don't Lose Your Levy Funds
From August 2026, new levy funds expire 12 months after entering your account (down from 24 months). The oldest funds are used first. Plan your apprenticeship starts now to avoid losing money you've already paid.
How to Use Your Levy
Getting started with your apprenticeship levy is straightforward. Here's the process from setup to success.
Set Up Your Apprenticeship Service Account
Register on the government's apprenticeship service to access your levy funds. You'll need a GOV.UK One Login, your organisation's Government Gateway login and authority to add your PAYE schemes.
Choose a Training Provider
Select a provider on the Apprenticeship Provider and Assessment Register (APAR) like VQ Solutions. We'll guide you through apprenticeship standards and help match programmes to your business needs.
Add Apprentices
Add apprenticeships for new or existing staff. Set training start dates, agree costs, and approve payments from your apprenticeship service account.
Monitor Progress
Track apprentice progress, manage funding drawdowns, and receive regular updates from your training provider throughout the programme.
Transfer Unused Levy to Other Employers
Can't use all your levy funds? Each year you can transfer up to 50% of your previous year's levy funds to other employers. With the shorter 12-month expiry, transfers are a powerful way to put funds to work while supporting SMEs in your supply chain, sector partners, or local businesses.
Levy transfers create goodwill, strengthen business relationships, and help develop the wider talent pool your industry depends on. Many employers use transfers as part of their corporate social responsibility strategy.
How Levy Transfer Works
Identify an employer you want to support (supply chain partner, sector colleague, or local business)
Create a pledge in your apprenticeship service account, or connect directly using their account ID
Agree the apprenticeship, number of apprentices and training costs the transfer will fund
Payments leave your account monthly for the full duration of the apprenticeship
How VQ Solutions Can Help
We make levy management simple. From initial planning to ongoing programme delivery, our team guides you every step of the way.
Levy Planning
We help you audit your levy account, identify expiring funds, and build a strategic plan to maximise your investment in workforce development.
Programme Matching
Our experts match your business needs to the right apprenticeship standards, whether you're hiring new talent or upskilling existing staff.
Transfer Facilitation
If you have surplus levy, we can connect you with SMEs who need funding, helping you support your supply chain or local community.
Apprenticeship Levy FAQs
Common questions about the apprenticeship levy, how it works, and how to make the most of your funds.
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Ready to maximise your apprenticeship levy?
Let our team help you plan your levy strategy, match programmes to your workforce needs, and ensure you get full value from your investment.
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