CITB simplifies training levy system

CITB simplifies training levy system


  • Date: Friday 18th July 2014

Raft of changes for firms including labour-only and Construction Industry Scheme sub-contractors.
 
Following an 18 month consultation, the CITB has introduced changes, simplfying the training levy system.

The new scheme will include:
 
  • Maintains PAYE Levy at 0.5%
  • Brings to an end the raising of levy on payments to labour-only sub-contractors
  • Introduces a levy on payments made to net (taxed) Construction IndustryScheme (CIS) sub-contractors, using figures already provided by employers to HMRC
  • Increases the size of the small business levy reduction from £100,000 to£300,000
  • Removes the Labour-Only Payments Received offset mechanism, whichaffects less than 10% of all employers
  • All registered employers will be informed of the possible impacts the thechanges will have on their business.
Douglas Matthew, head of levy and grant for CITB said: “The changes have come in response to feedback from employers. They told us that the current process is complicated, time-consuming and can lead to extra administration costs.

“More than 22,000 employers currently pay the Levy so it is important that we have the right system in place. Using figures provided by employers on their 2014 Levy Returns, we believe that under the new arrangements 84% of employers are likely to pay the same or less Levy. Where companies face an increase in their payments, we will work closely with them to help them through the transition.

“To give all employers time to prepare for the new arrangements, the changes will not be implemented until 2017.”

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