CITB is empowered to impose a levy on employers in the construction industry.
The levy applies to all employers ‘engaged wholly or mainly in construction industry activities’. In other words, when construction activities take up more than half of your total employees’ time (including subcontractors).
How much levy you pay is based on your total wage bill (the amount you pay your employees in a year).
Here the word ‘employees’ specifically means individuals on the payroll and Construction Industry Scheme (CIS) subcontractors who you make a CIS deduction from. This is defined by Industrial Training legislation.
Levy rates in 2020 will remain at 0.35% for PAYE and 1.25% for Net CIS; however, in 2021 these rates will be cut by 50% for 1 year.
There are some exemptions and reductions in the levy for small employers. Find out more about levy rates and how they are assessed
The CITB Levy is used to support construction employers to make sure the industry has the skilled workforce it needs.
It is dedicated to ensuring the construction workforce has the right skills for now and the future, based around our three strategic priorities: