CITB Levy
What is the CITB Levy?
The CITB levy is a tax paid by employers to the CITB. The CITB uses the levy to:
- support training development through grants and funding
- promote the construction industry as a great career choice
- offer high-quality apprenticeships
- identify skills needs across the construction industry
- develop occupational standards and qualifications
Why does the CITB Levy exist?
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 three priorities:
- Careers
- Standards and qualifications
- Training and development
Is the levy a legal requirement?
Under the Industrial Training Act 1982 and consequent Levy Orders, CITB must raise a levy assessment on all employers in the construction industry.
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). If that is the case, you need to register your business with CITB and complete an annual Levy Return so that they can carry out a levy assessment.
How does the CITB Levy work?
As a CITB-registered employer, you’ll receive a Levy Assessment Notice once per year from CITB. This assessment will tell you if there is a levy you need to pay, and if so, how much it is and when you need to pay it.
You’ll receive your Levy Assessment Notice in Spring.
Staying up to date on your CITB Levy payments means you can apply for a training grant or funding through the CITB Skills and Training Fund.
How much is the CITB Levy?
How much annual CITB Levy you pay is based on your total wage bill (the amount you pay your workers in a year).
For the purposes of the current Levy, workers include employees paid through the payroll and Construction Industry Scheme (CIS) subcontractors who you make CIS deductions from. The levy is not applied to CIS subcontractors who you don’t make CIS deductions from.
2023 Levy Assessment Rates
Levy rates for the 2021 – 2023 Levy Assessments, under the 2022 Levy Order, are confirmed as:
- 0.35% on payroll staff (including furlough payments made under the HMRC Coronavirus Job Retention Scheme (CJRS))
- 1.25% on CIS subcontractors who you make CIS deductions from (Net paid CIS)
Reductions and Exemptions
If your total wage bill (payroll and Net CIS) is between £120,000 and £399,999 your organisation will receive a 50% reduction on your Levy. This is called the ‘Small Business Levy Reduction’.
If your total wage bill (payroll and Net CIS) is under £120,000, your organisation won’t have to pay the Levy. This is called the ‘Small Business Levy Exemption’. You must still complete a Levy Return even if you don’t need to pay the Levy.
Find out more:
Find out if you’re eligible for a CITB grant payment, plus discover our range of grant-eligible courses including short courses, plant NVQs and construction management NVQs.
Discover the CITB Skills and Training Fund, where small businesses can claim up to £10,000 and medium businesses can claim up to £25,000 to invest in their staff development.
Browse our full list courses developed by the CITB to support the construction industry with key skills and knowledge including safety, supervision, and management.
For more information about the CITB levy
