The way Apprenticeships are funded changed when the UK Apprenticeship levy came into effect in April 2017.
If your payroll exceeds £3m, then an Apprenticeship levy of 0.5% will be applicable to your business, by way of contribution to the cost of funding Apprenticeships. This contribution is to be paid monthly, direct to HMRC and has a £15,000 allowance to be offset. You can invest in new or existing employees. Employees of any age can be eligible for an Apprenticeship, so long as there is a significant requirement for training. Should you wish to spend more on Apprenticeships than available in your fund, there will be a requirement to contribute to this cost. Apprenticeship Levy
If your payroll is less than £3m per annum, then there is no requirement for you to pay the Apprenticeship levy. There will be a requirement to pay a 10% contribution towards the training of Apprentices over the age of 19. The government will contribute the additional 90%. If you have less than 50 employees, you will not have to make any contribution to the cost of any Apprentices you employ under the age of 18. If you have more than 50 employees, then this 10% contribution will be applicable to Apprentices of all ages, and the government will fund the remaining 90% of the cost.