Ask PayslipIQ · Last reviewed 2026-05-08
What is the Apprenticeship Levy and does it affect my payslip?
The Apprenticeship Levy is a 0.5% tax on employer payroll above £3 million a year. It is paid by employers, not employees. It does not appear as a deduction on your payslip and does not reduce your take-home pay.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.
Many employees see Apprenticeship Levy mentioned in employer accounts and assume it comes out of their pay. It does not. The levy is funded by employer NI processes but is structurally an employer cost.
The levy funds the apprenticeship training budget that employers can draw on for new apprentices.
If you see "Apprenticeship Levy" as a deduction on your payslip, that is a mistake. It should not appear under your deductions. Raise it with payroll.
Related
Reviewed by PayslipIQ Editorial. Sources cited where applicable.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.