Levy Clock: when does my apprenticeship levy expire?
Pick the month a contribution was paid in. The clock tells you the date it leaves your account, which rule applies, and what it could still fund.
| Paid in | Rule | Expires at end of | Status |
|---|
How the two clocks work
The apprenticeship levy is paid monthly by employers with an annual pay bill over £3 million and lands in the apprenticeship service account one to two weeks after PAYE. Every month's contribution carries its own expiry date. For the balance you were holding on 31 July 2026, that date is 24 months after the contribution month. For every contribution from 1 August 2026, it is 12 months. On the expiry date, whatever is left of that month's money is removed and returned to HM Treasury. It cannot be reclaimed or carried over.
Spending runs oldest first. When you reserve funding for a new apprenticeship, the service draws against your oldest contributions, so each new start protects the money nearest to expiry. The practical consequence of the 2026 change is that an employer used to a two-year runway now has one year on every new pound.
What an at-risk balance could still fund
| Programme | Funding reserved | Over | Mobilises in |
|---|---|---|---|
| AI and Automation Practitioner Level 4 (one place) | £18,000 | 15 months | Next open induction: Mon 26 Oct 2026 |
| Closed cohort of eight on the Level 4 (HR, marketing, finance or any team) | £144,000 | 15 months | 6 to 8 weeks |
| AI Leadership unit (Level 5, one of three) | £750 per learner | A few weeks | Next taster: Wed 4 Nov 2026 |
| AI for Senior Leaders (Level 4 with CMI Level 7) | £18,000 | 15 months | Next open induction: Mon 26 Oct 2026 |
Levy payers can also transfer up to 50% of annual funds to other employers. See the levy expiry guide, the apprenticeship levy calculator and the AI levy maximiser.
Get a reminder 90 days before your levy expires
Frequently asked questions
When does apprenticeship levy expire?
Levy contributions that were in your apprenticeship service account on or before 31 July 2026 expire 24 months after the month they entered the account. Contributions entering the account from 1 August 2026 expire after 12 months. Unspent funds return to HM Treasury at the start of the month after expiry and cannot be reclaimed.
What is the 12-month levy expiry rule?
From 1 August 2026, each month's levy contribution has 12 months to be spent on apprenticeship training before it is removed. Funds are drawn down oldest first (first in, first out), so starting apprenticeships protects the money closest to expiry.
Does the 24-month rule still apply to anything?
Yes. The balance held on 31 July 2026 keeps the 24-month window, so a contribution from July 2026 runs to the end of July 2028 and a contribution from September 2024 expired at the end of September 2026. Everything paid in from August 2026 is on the 12-month clock.
How do I stop levy expiring?
Commit new apprenticeship starts. Each start reserves funding against the oldest contributions first. A Level 4 AI and Automation Practitioner reserves £18,000 over 15 months; an AI Leadership unit reserves £750 over a few weeks; a closed cohort of eight on the Level 4 reserves £144,000.
Can I transfer levy I cannot spend?
Levy payers can transfer up to 50% of their annual funds to other employers, including suppliers, charities and SMEs in their supply chain. Transferred funds pay for the receiving employer's apprenticeships in full.