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About the CITB Levy

CITB is empowered to impose a levy on employers in the construction industry.

Does the levy apply to you?

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).

Find out more about who should register

How much is it?

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.

The rates are:

  • 0.35% on  total payments to all employees on the payroll
  • 1.25% on Construction Industry Scheme (CIS) subcontractors who you deduct CIS tax from (commonly known as net CIS sub-contractors)

There are some exemptions and reductions in the levy for small employers.  Find out more about levy rates and how they are assessed

What's the purpose of the CITB Levy?

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:

  • Careers
  • Standards and qualifications
  • Training and development

Find out more about how we use the levy

The word ‘employees’ has a particular definition in the Industrial Training legislation and includes individuals on the payroll and Construction Industry Scheme (CIS) subcontractors who you make a CIS  deduction [PJ1] from.


 [PJ1]This is the correct terminology as used by HMRC.  The deductions go towards paying a subcontractors tax.  They are not tax in themselves.  https://www.gov.uk/what-is-the-construction-industry-scheme

 

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