CITB Transition Package for Apprenticeship Levy

Application for this package has now closed.

The deadline for completing the declaration was 9 June 2017. 

If you wish to appeal, you need to make your case in writing, providing supporting evidence of your Apprenticeship Levy Allowance. Send your appeal by e-mail to transition.package@citb.co.uk: you may then be asked  to complete a form and supply evidence that you are paying the Government Apprenticeship Levy. 

If you have already applied for the Transition Package and meet the criteria, you can find out more below about what you will receive and when. 

The CITB Transition Package is a one-year package to help employers who have to pay both the CITB 2016 Levy Assessment and the government’s Apprenticeship Levy in the 2017/18 tax year.

Employers who have to pay the Apprenticeship Levy will get an enhancement to the training grants they claim. (This enhancement excludes a Supplementary Grant payment, the Exceptional Training Grant and Grants paid at an enhanced rate.)

Eligible employers will get paid in four instalment .

Contact transition.package@citb.co.uk for further details.

Full details on the business rules for this package are available from transition.package@citb.co.uk.

CITB Transition Package Business Rules

1. Transition Package is available to employers registered with CITB, who will be paying both the CITB and Apprenticeship levies from April 2017.

  • This will apply to the CITB base period and Apprenticeship Levy year of 6 April 2017 to 5 April 2018.
  • Identification of employers who will benefit from the Transition Package, will be based on the PAYE figures in their 2016 and 2018 CITB Levy Returns (see point 4).
  • If you are part of a connected company, you can provide additional information.
  • The Transition Package will not be available to employers who are not paying the Apprenticeship Levy, or employers who receive and pay a 2016 estimated Levy assessment (i.e. their actual PAYE figure is unknown to us).

2. Employers will be treated as individual entities unless CITB is notified otherwise.

  • We will assume by default that each Levy Return will have the £3m Apprenticeship Levy allowance.
  • Connected companies can inform CITB how they are distributing their allowance across their businesses. This will then form part of the enhancement cap calculation.
  • The Transition Package will only relate to construction-related PAYE within connected companies for employers who are registered with CITB.

3. The Transition Package is an enhancement to all Grants which are billed (processed for payment) between 6 April 2017 and 5 April 2018, with the exception of the Supplementary Grant and Grants paid at an enhanced rate, for example Technical and Professional, and Sector Specific Training Plans.

This is to ensure that employers have sufficient funds to continue their investment in training.

  • Affected employers will have their billed Grants summarised, excluding Supplementary Grants and Grants paid at an enhanced rate, but including Grants billed to their establishments.
  • For employers with establishments, individual billed Grant summaries will be combined into a total Grant billed value.
  • This will not change the layout of your current Grant remittance advices.

4. The Transition Package will be paid quarterly in arrears, using the existing grant payment mechanisms.

  • Three quarterly payments will be based on 2016 CITB Levy Return (6 April 2015 to 5 April 2016), up to and including January 2018.
  • The final quarterly payment will be based on the 2018 CITB Levy Return (6 April 2017 to 5 April 2018).This payment will be issued either in June 2018, July 2018 or August 2018, once the 2018 CITB Levy Return has been received.

5. There is a cap on how much will be paid under the Transition Package.

  • This cap is calculated using PAYE figures in the CITB Levy Returns, and will be no more than 100 per cent of the Apprenticeship Levy due. (Current governance on Grants administration applies.)
  • The Transition Package calculations will initially be based on the 2016 CITB Levy Return (6 April 2015 to 5 April 2016).
  • Enhancement cap = Levy Return PAYE (or advised Apprenticeship Levy allowance) greater than £3m, multiplied by 0.5%.The final Transition Package calculation will be based on the 2018 CITB Levy Return, which covers the PAYE figures for the period 6 April 2017 to 5 April 2018.
  • If PAYE on the 2018 Levy Return is higher than the 2016 Levy Return, the cap will be increased.The final payment will therefore reflect this increase.
  • Conversely if the revised cap is lower, all overpayments will be recovered.

6. Overpaid grant

  • CITB’s overpayment rules will be applied to the Transition Package.
  • Only overpayments relating to Grants billed between 6 April 2017 and 5 April 2018, will be taken into account when calculating the Transition Package.
  • Where the initial cap (based on the 2016 Levy Return) is higher than the final cap (based on the 2018 Levy return), all overpaid Transition Package enhancements will be recovered.

The Transition Package will be paid quarterly in arrears, using the existing grant payment mechanisms.

Three quarterly payments will be based on 2016 CITB Levy Return  (6 April 2015 to 5 April 2016), up to and including January 2018.

The final quarterly payment will be based on the 2018 CITB Levy Return (6 April 2017 to 5 April 2018).This payment will be issued either in June 2018, July 2018 or August 2018, once the 2018 CITB Levy Return has been received.

Grants billed (processed for payment) up to these dates: Date enhancement is paid:

5 May 2017
5 June 2017 
5 July 2017

Late July 2017
5 August 2017
5 September 2017 
5 October 2017 
Late October 2017
5 November 2017
5 December 2017 
5 January 2018 
Late January 2018

5 February 2018
5 March 2018 
5 April 2018

This will be paid between June to August 2018, once the 2018 CITB Levy Return has been received
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