CITB Training Levy / Grants

SueC_2

I'm completely new to this, and a wee bit cynical.

On initial assessment, it seems that by submitting a Levy return, and then claiming back grants as per training carried out, we will actually make a profit from the scheme.

I'm a sound believer that if something seems too good to be, then it probably is. But in this case I can't find the catch.

I'd be interested to hear people's experience, and whether it is actually possible to end up quids-in, or if there is hidden wriggle room for the CITB and they find loopholes that get them out of paying.

Thanks all.

comeandgo

If you are an employer in the construction industry and registered with CITB then you do get grants for apprentices or any other training your company requires. The figures submitted on your levy return will determine whether you pay anything to CITB but even if you are under small company threshold you still get grants.
Quids in, I don't think so. You have to pay your apprentice the appropriate wages and let them go to college, the first year its usually one month at college alternate with one back at work but it does depend on which trade your apprentice is in.
Phone them and ask for a visit from one of their apprenticeship officers.

SueC_2

comeandgo wrote: »

If you are an employer in the construction industry and registered with CITB then you do get grants for apprentices or any other training your company requires. The figures submitted on your levy return will determine whether you pay anything to CITB but even if you are under small company threshold you still get grants.
Quids in, I don't think so. You have to pay your apprentice the appropriate wages and let them go to college, the first year its usually one month at college alternate with one back at work but it does depend on which trade your apprentice is in.
Phone them and ask for a visit from one of their apprenticeship officers.

I've done that, and yes, by the time you take all the different types of grant available (Training and Development Plan, Technial Management and Professional, Plant Training, Supplementary Payment), it appears that we'll be claiming back more than we pay. And we don't even run apprenticeships.

But it seems too good to be true.............

comeandgo

Are you taking in the fact that you can only get 5 days training per employee per year? There are no tricks, do the training, pay the levy, get the grants.

comeandgo

The 5 day limit is not apprentices off course. And I've just remembered, this year the grant rate is very very generous so there is all chance you will be able to claim a lot.

SueC_2

comeandgo wrote: »

Are you taking in the fact that you can only get 5 days training per employee per year? There are no tricks, do the training, pay the levy, get the grants.

Yes. But it doesn't have to be used as 5 days per employee. Some employees can do no training, and others can do 10, 20, as many as you like, so long as the total figure doesn't exceed 5 days per employee.

SueC_2

comeandgo wrote: »

And I've just remembered, this year the grant rate is very very generous so there is all chance you will be able to claim a lot.

I'm working on next year, as we missed the cut-off date for submitting a return this year (ie. last year). But I'm told the grant rates are unlikely to change significantly.

comeandgo

Yes, that is correct but the maxiimum days per employee is 35. Sounds like you have read up on it - most contruction companies use the CITB for training grants, especially if they have to pay large levies.

comeandgo

Hm, not sure I agree with the rates not changing, they change most years and this year its the highest its ever been and will go down at some point.

Funky_Bold_Ribena

It definitely will go down when they realise this year's spends...the reason it has gone up is that the levy grant system can't make a profit so in years where the training has gone down [mainly due to them decreasing the grant], the industry panics and stops doing so much, and then they have an underspend - then it bobs back up again for a few years until people catch on and start claiming and then it's back down again.

Yes, in answer to your query - the level of levy is not related to the level of grant. So some employers end up with huge levy bills, specifically if they use alot of Labour Only Subcontractors; and don't do an awful lot of training outside the training plan.

If it helps to put it into perspective; my last job was a consultant, and I used to write training plans for companies. In one company, their levy was zero and their training plan was £180k.

Ker-ching. [although they did have a percentage added onto any work taken off by companies they did work for, who were levied themselves for labour only, but they had that for years and had already factored it into their P/L equations].

That was a good job, one week's work a quarter and I invoiced them for a percentage of their grant claims.

Smaller companies under the threshold with an apprentice will gain from the start, but once you are on the system you will be paying forever so over the long term, you will likely make a loss on it.

SueC_2

Funky_Bold_Ribena wrote: »

It definitely will go down when they realise this year's spends...the reason it has gone up is that the levy grant system can't make a profit so in years where the training has gone down [mainly due to them decreasing the grant], the industry panics and stops doing so much, and then they have an underspend - then it bobs back up again for a few years until people catch on and start claiming and then it's back down again.

Yes, in answer to your query - the level of levy is not related to the level of grant. So some employers end up with huge levy bills, specifically if they use alot of Labour Only Subcontractors; and don't do an awful lot of training outside the training plan.

If it helps to put it into perspective; my last job was a consultant, and I used to write training plans for companies. In one company, their levy was zero and their training plan was £180k.

Ker-ching. [although they did have a percentage added onto any work taken off by companies they did work for, who were levied themselves for labour only, but they had that for years and had already factored it into their P/L equations].

That was a good job, one week's work a quarter and I invoiced them for a percentage of their grant claims.

Smaller companies under the threshold with an apprentice will gain from the start, but once you are on the system you will be paying forever so over the long term, you will likely make a loss on it.

Really helpful, thanks.

And yes, I now see that the 'catch' is simply that the current level of grants isn't guaranteed in future years. So, I need to maximise profit this year while the going's good!

Thanks again.