Full details on the business rules for this package are available from firstname.lastname@example.org.
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, the Carillion adoption 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, the Carillion adoption grant 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.