CITB Levy: Changes in calculation basis
1st May 2018Builders will probably now be aware that the basis for calculating how much their annual payment is under the Construction Industry Training Board (CITB) has recently changed:
| Old Basis | New Basis | |
| Levy on employees | 0.5% | 0.5% |
| Levy on labour only sub-contractors | 1.25% | 0% |
| Levy on payments to sub-contractors with Net CIS status | 0% | 1.25% |
| Levy on payments to sub-contractors with Gross CIS status | 0% | 0% |
| Wage bill threshold for 50% levy reduction | £80,000 – £100,000 | £80,000 – £400,000 |
With 18% of those liable to pay the CITB levy predicted to now pay more, consideration should perhaps be given to:
- Only engaging sub-contractors with gross, instead of net, CIS status.
- Taking staff off the books.
Disclaimer - All information in this post was correct at time of writing.
