Construction Industry Training Board (CITB) levy is a legal requirement for the whole of the Construction Industry.
The CITB levy has to be paid by all sub-contractors and Principal Contractors whose annual wage bill (PAYE + CIS) exceeds £80K
If your wage bill does NOT exceed £80K then you DO NOT have to register with CITB.
All Contractors and Sub-Contractors whose overall annual wage bill exceeds £80k are required to register with the CITB.
Current levy rates are 0.5% of your total annual PAYE wages and 1.25% of your annual CIS wages. If your total annual wage bill is between £0k and £399k, you pay 50% of this. If your total annual wage bill exceeds £399k, then you pay 100%.
The CITB levy should only be collected by the CITB using the CITB Levy Return, NOT Principal Contractors. Principal Contractors can only deduct CITB levy provided the Sub-Contractor has agreed. If the Sub-Contractor has not agreed, then the Principal Contractor should not deduct.
The CITB has issued a statement to this effect, however, the statement is for information purposes only and my experience is that many Principal Contractors do deduct CITB levy from sub-contract payments. You can contest this, but may have to use a solicitor to fight your case.
What is the CITB Levy?
CITB’s levy and grants system ensures that the British construction industry has the skilled workforce that it needs.
The levy funds that we collect from employers are invested back into the industry through training. This helps to drive up standards and ensures projects are completed safely, sustainably, on time and within budget.
Paying the levy
After you have completed your CITB Levy Return and received your Levy Assessment Notice explaining how much levy you need to pay, you can arrange your levy payment.
When to pay
You need to pay the levy, or set up a direct debit to pay by instalments, within 30 days of receiving your Levy Assessment Notice