Should I Be Paying into the Construction Levy?
Two common questions we often get asked as a UK training provider, particularly in relation to the Construction industry, are:
1. Should I be paying into the levy?
2. Is it a legal requirement?
So, we thought we’d try and shed some light on the matter, confirm some requirements under the law, and dispel myths or hearsay. It’s worth mentioning that your primary source of advice for this topic is CITB themselves.
What is a Levy?
Under the Industrial Training Act 1982 and subsequent Levy Orders, CITB must raise a levy assessment on all employers in the construction industry. However, the construction industry, for our purposes, may differ significantly from what you imagine it to be. The activities of the construction industry are set out below.
You are “engaged wholly or mainly in construction industry activities” when construction activities take up more than half of your total employees’ time (including subcontractors). If that is the case, you need to register your business with CITB and complete an annual Levy Return so that we can carry out a levy assessment.
For the purposes of the CITB levy, an employer is a person or a company with one or more employees, including staff on the payroll and subcontractors.
“Employee” is defined in the Industrial Training Act 1982 as including “a person engaged under a contract for services”. This means that in addition to direct employees on the payroll, engaged under contracts of service, it includes subcontractors (be they individuals, firms, or limited companies) engaged under contracts for services.
Does the CITB Levy apply to your business?
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).
How much will a company Pay into The Levy?
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 from whom you make a CIS deduction. This is defined by Industrial Training legislation.
Levy rates for the 2024 Levy Assessment are proposed as 0.35% for PAYE and 1.25% for Net CIS under the 2025 Levy Order which will be confirmed in Spring 2025.
There are some exemptions and reductions in the levy for small employers. Find out more about levy rates and how they are assessed.
To help you see what your CITB Levy may look like, we have produced a simple Levy calculator.
What is the Purpose of the CITB Levy?
The CITB Levy is used to support the construction industry to have a skilled, competent, and inclusive workforce, now and in the future.
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
How do you pay a Levy return?
How much Levy is due will be communicated to you in your Levy Assessment Notice, normally issued in Spring following Levy Return submission.
There are two ways you can pay the Levy:
- Pay monthly by interest-free Direct Debit. This service helps you to spread your payments and is easy to set up.
- Pay in full as one lump sum. Bank details for full payment can be found on your Levy Assessment Notice.
For help, contact levy.grant@citb.co.uk.
How do you register?
Simply fill out this form.
Construction Employers Registration for Grants & Funding – CITB
Can I get access to funding for training as a Levy Payer?
CITB provides grants for construction industry employers who provide training for their workforce. The Grants Scheme helps the industry maintain high standards, making sure people are being trained in the right skills for the industry to thrive. So, 100% yes – you can claim back the costs for a whole heap of training and apply for skills and training funds up to the value of £50,000 towards your training and development costs. 3 of the most common routes are:
Short qualifications
You can apply for between £300 and £1,500 for the achievement of qualifications at Level 2 and above that take less than a year to complete. These include NVQs, Diplomas, and the NEBOSH National Certificate in Construction Safety and Health.
The grant rates vary depending on which qualification has been achieved. Full information on the rules for this grant, how to apply, and which qualifications are covered can be found on the Short qualifications page.
Short courses
- You can apply for a grant for the achievement of short courses which last from 3 hours to 29 days and are focused on teaching core construction skills.
- Grant rates for these courses are based on several factors such as duration, intensity, and practical content.
- Refresher training is payable at half the value of the full course grant.
- Full information on grant rates, the rules for this grant, how to apply, and which courses are covered can be found on the Short courses page.
Skills and training Grants
No matter how small your business is, CITB’s Skills and Training Fund is offering you funding up to £50,000 to invest in training and equip your workforce to face the future. Skills and Training fund – CITB.
PGL Midlands
PGL Midlands has long been established as an accredited provider of CITB products and wider training and NVQs. We are an Approved Training Organisation (ATO) and will claim short course grants on your behalf for all courses conducted with us. If you require any support, info, help, or training, please do not hesitate to reach out – we’re happy to help!
