If you’d like to quickly calculate your Levy contributions, including a breakdown your actual monthly spend and how you can spend your training funds with Solvo Vir, take a look at our Apprenticeship Levy calculator.
Here is a breakdown on how you can work out your Levy contribution.
- Take your annual PAYE bill (inclusive of all salaries, social security costs and pension costs paid out to your employees)
- Multiply by the Levy rate of 0.5%.
- Subtract the annual £15,000 allowance to reveal your annual Levy costs.
For more information on how your PAYE bill affects the Levy cost, take a look here.
Levy top-up for employers in England
If you are an employer based in England you will also receive a top-up from the government that is equivalent to 10% of your annual contribution. So, for every £1 you pay towards your Levy contribution, you can spend £1.10 on apprenticeship training.
You are an employer with 400 employees, each earning an annual gross salary of £20,000. Your available annual Levy funds come to £27,500 per year.
Find out how this works
- Total annual Paye bill: 400 employees x £20,000 per employee = £8,000,000
- Levy charge: £8,000,000 x 0.5% = £40,000
- Levy contribution: £40,000 – £15,000 government contribution = £25,000
- Available annual Levy funds = Levy Contribution + 10% Government Top Up
- Available annual Levy funds = £25,000 + £2,500 (10% of contribution
- Available annual Levy funds = £27,500 per year.