CITB transition package for apprenticeship levy

Applications for this package have now closed.

Final payments will be made by end March 2019.

The CITB transition package was set up to help employers who had to pay both the CITB 2016 levy assessment and the government’s apprenticeship levy in the 2017/18 tax year.

Employers who had to pay the apprenticeship levy received an enhancement to the training grants they claimed. (This enhancement excluded a supplementary grant payment, the Carillion adoption grant, the exceptional training grant and grants paid at an enhanced rate.)

CITB transition package business rules

1. Transition package was available to employers registered with CITB, who paid both the CITB and apprenticeship levies from April 2017

  • This applied to the CITB base period and apprenticeship levy year of 6 April 2017 to 5 April 2018.
  • Identification of employers who benefited from the transition package, was based on the PAYE figures in their 2016 and 2018 CITB Levy Returns (see point 4).
  • If you were part of a connected company, you had the chance to provide additional information.
  • The transition package was not available to employers who were not paying the apprenticeship levy, or employers who received and paid a 2016 estimated Levy assessment (i.e. their actual PAYE figure was unknown to us).

2. Employers were treated as individual entities unless CITB was notified otherwise.

  • We assumed by default that each Levy Return had the £3m apprenticeship levy allowance.
  • Connected companies had the chance to inform CITB how they were distributing their allowance across their businesses. This then formed part of the enhancement cap calculation.
  • The transition package only related to construction-related PAYE within connected companies for employers registered with CITB.

3. The transition package was an enhancement to all grants that were 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 was to ensure that employers had sufficient funds to continue their investment in training.

  • Affected employers had 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 were combined into a total grant billed value.
  • This did not change the layout of grant remittance advices.

4. The transition package was paid quarterly in arrears, using existing grant payment mechanisms.

  • Three quarterly payments were based on 2016 CITB Levy Return (6 April 2015 to 5 April 2016), up to and including January 2018.
  • The final quarterly payment is based on the 2018 CITB Levy Return (6 April 2017 to 5 April 2018). This payment is currently being issued now that the 2018 CITB Levy Return has been received.

5. There is a cap on how much can 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 were initially 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 where the revised cap is lower, all overpayments will be recovered.

6. Overpaid grant

  • CITB’s overpayment rules apply to the transition package.
  • Only overpayments relating to grants billed between 6 April 2017 and 5 April 2018, are 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.