Apprenticeship Levy Calculator
Whether you're a levy payer or not, see how apprenticeship funding works for your pay bill across AI, data, and leadership. The rules below are for starts from 1 August 2026 in England.
Your Annual Pay Bill
Ready to Use Your Levy?
Book a discovery call with TESS Group and we'll show you exactly how to deploy your levy on AI, data, and leadership apprenticeships, before it expires.
Book a Discovery Call →Two products. Two funding rules. Check which rule applies.
TESS Group offers two distinct kinds of AI training. They use different government funding rules, both legitimate, both well-established. Here’s what your CFO needs to see.
L3 / L4 / L5 / L6 / L7 apprenticeship Programmes
12–24 month full apprenticeship programmes (e.g. AI & Automation Practitioner L4, AI Leadership L5).
- Levy payers (pay bill above £3 million): training is paid from your Apprenticeship Levy digital account while it has funds. If the account has run out, apprentices aged 16–24 are 100% government-funded and you pay 0%. Aged 25 and over, the government pays 75% and you pay 25%.
- SMEs / non-levy: apprentices aged 16–24 are 100% government-funded and you pay 0%. Aged 25 and over, the government pays 95% and you pay 5%.
Level 5 AI Units
30-hour Skills England units: AI Strategy & Opportunity, AI Adoption & Governance, AI Delivery & Transformation. Costs depend on the programme and your funding position. Book a free conversation for a tailored estimate.
- Levy payers: drawn directly from your Apprenticeship Levy digital account.
- SMEs / non-levy: 100% government-funded, no co-investment, no 5%, nothing to find from your budget.
Source: GOV.UK, Apprenticeship funding. The rules above are for starts from 1 August 2026 in England. Apprenticeship units: non-levy employers are 100% funded; levy payers pay from their account, and if it has run out the government pays 100% for learners aged 19 to 24 and 75% for learners aged 25 and over (you pay 25%). GOV.UK, Apprenticeship unit funding rules.
Common Questions
How is the apprenticeship levy calculated?
The levy is 0.5% of your total annual pay bill. Every employer gets a £15,000 annual allowance, so you only start paying when your payroll exceeds £3 million. The levy is collected monthly via PAYE.
What if I don't use my levy?
From 1 August 2026, unused funds expire after just 12 months on a first-in, first-out basis (previously 24 months). The money simply disappears. The government has also removed the 10% top-up on levy contributions. AI and data apprenticeships are among the highest-value ways to use your levy before it expires.
Can I use my levy for existing employees?
Yes. Apprenticeships aren't just for new hires. You can enrol existing employees at any age on programmes like the Level 4 AI & Automation Practitioner. This is often the most impactful use of your levy.
We're not a levy payer. Can we still access funding?
Yes. Enter a pay bill of £3 million or less above and you'll see the non-levy view. For starts from 1 August 2026 in England, apprentices aged 16 to 24 are funded 100% by the government and you pay 0%. Apprentices aged 25 and over are funded 95% by the government and you pay 5%. Costs depend on the programme and your funding position. Book a free conversation for a tailored estimate. Source: GOV.UK, Apprenticeship funding.
Want to understand the full picture?
Our in-depth guide covers everything from levy transfers and funding bands to the April 2026 changes, incentive payments, and how to check your Digital Apprenticeship Service balance.
Read: Apprenticeship Levy Explained →