Calculating your transfer allowance

Employers that pay the apprenticeship levy can transfer up to 25% of their unused apprenticeship funds to help other employers pay for apprenticeship training.

We calculate the transfer allowance each year from the total amount of levy you declared in the previous tax year.

The calculation for 22/23 will be completed in April 2022.  This calculation will use the information you declare to HMRC in March for the 20/21 financial year.

It is therefore essential that the information you submit to HMRC in March is correct as this figure will be used to calculate your transfer allowance for the following year. The transfer calculation/allowance will not be amended if you submit different information to HMRC at a later date.

How we work out your transfer allowance

We calculate the transfer allowance each year from the total amount of levy you declared in the previous tax year. The amount includes the English percentage and the 10% government top up.

Employer A declares £500,000 of apprenticeship levy in the tax year April 2020 to March 2021

90% of their employees are based in workplaces in England so their ‘English percentage’ is 90%

£500,000 x 90% = £450,000. 

Add 10% government top.

10% of £450,000 = £45,000

Total funds entered into the levy account = £495,000

25% Transfer allowance

25% of £495,000 = £123,750.

Employer A’s transfers allowance for 2021 to 2022 is £123,750.

Last updated on 29 March 2022 08:51