KNOWLEDGE HUB
CITB Levy
The CITB levy is a fee paid by construction industry employers to the CITB, based on the total amount the employer pays its employees and subcontractors annually.
OVERVIEW
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 by:
- supporting training development through grants and funding
- promoting the construction industry as a great career choice
- offering high-quality apprenticeships
- identifying skills needs across the construction industry
- developing occupational standards and qualification
Is the levy a legal requirement?
Under the Industrial Training Act 1982, 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), 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 levy work?
As a CITB-registered employer, you’ll receive a Levy Assessment notice once per year, every spring, 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.
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, even if you’re eligible for a small business reduction or exemption.
CITB LEVY
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).
2024/25 Levy Rates
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 current rates are as follows:
- 0.35% on payroll staff
- 1.25% on CIS subcontractors from whom you make CIS deductions (net paid CIS)
Reductions and Exemptions
Small businesses receive reductions and exemptions depending on their total wage bill.
The following details have been proposed under the 2025 Levy Order (to be confirmed Spring 2025):
- If your total wage bill (payroll and Net CIS) is between £135,000 and £449,999 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 £135,000 your organisation won’t have to pay the levy. This is called the ‘Small Business Levy Exemption’.
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 of courses developed by the CITB to support the construction industry with key skills and knowledge including safety, supervision, and management.