Your industry, your say

The confirmed Levy proposal

Following the consultation period, the proposed Levy rate for the period 2018–2020 is confirmed as 0.35% for PAYE and 1.25% for Net CIS. This will now go to the formal consensus process before being ratified by government.

The Levy proposal is unchanged

The rates are unchanged from the proposal taken out to consultation in February to May this year, and reflect the views of employers who provided feedback.

Most of the employers consulted accepted the proposal as it stood, rating it as average or higher.

Review of the proposal

At a number of the consultation events, some employers questioned whether the Net CIS rate of 1.25% should be reduced. The original purpose of the Net CIS was to raise the same amount of revenue but more fairly across the supply chain. It was also designed to make it easier for employers because it replaced a system that was complex, time consuming and costly to compile for them.

CITB’s Board and the Levy Working Party are satisfied that Net CIS has had the intended impact. The shares of levy paid by different sized groups is unchanged, while amongst firms with less than nine employees, over 80% of employers have seen their bills either fall or stay the same.

What this means

The Levy proposal as outlined above will go forward to Consensus. It should also be noted that there will be no change to the existing thresholds, so employers;

  • are exempt if their wage bill is less than £80k
  • pay 50% of the rate if their wage bill is between £80k and £399k
  • pay the full rate if their wage bill is £400k or above.

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