Home News New CITB Levy proposal sees no change to labour only subcontractor charges

The Construction Industry Training Board (CITB) is to begin consultation with the construction industry on a new Levy offer which would see an across the board reduction in the Levy on direct labour for all firms and a reformed grants scheme but no change to subcontract Levy charges.

The proposal would see the PAYE Levy on the direct workforce cut from 0.5% to 0.35%. There would be no change in the net (CIS) Levy charged at 1.25% on the subcontract workforce.

The CITB said that new levy offer has been developed with input from the industry and in agreement with the industry’s Levy Working Party. Subject to agreement from industry, the new Levy would come into effect from April 2018.

Sarah Beale, chief executive at CITB, said: “We have been listening to our industry and are confident that this Levy offer is the best option.

“It will provide the funding required to deliver the support that industry needs, is simple to administer, and is straightforward for levy payers.

“Next month, we kick off the next stage of engaging with our industry. We will discuss with employers our proposals for how we support them better and consult on how we fund this through the Levy. We want to ensure that our offer is relevant, makes a real difference and delivers value for money.

“We want as many employers as possible to share their views and we will shortly be sharing details on how to get involved in the consultation.”

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