Introduced in April 2017 the Apprenticeship Levy aims to fund three million apprenticeships in the UK by 2020. If your annual payroll is more than £3m you will pay 0.5% into the apprenticeship levy each month, the Government adds 10% to the amount you pay each month.
Every employer will receive a £15,000 allowance to offset against the levy. The main aim is to persuade employers to take on more apprentices. Employers will be issued with a digital voucher to enable them to purchase training from a recognised provider.
See further guidance on the following site:
https://www.gov.uk/guidance/pay-apprenticeship-levy
The figure of £3m is based on payments to employees subject to Class 1 Secondary National Insurance Contributions (NICs) excepting those under the age of 16 or those whose earnings aren’t subject to NIC legislation.