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CITB to remove 5,000 smaller businesses from paying Levy

11 September 2020
Image: Dreamstime/Jonathan Cohen
Image: Dreamstime/Jonathan Cohen

The Construction Industry Training Board (CITB) will remove 5,000 smaller businesses from paying the Levy next year under new proposals submitted to government last week.

The CITB plans to raise the Small Business Levy Exemption, lifting employers’ wage bill threshold from £80,000 to £120,000.

The firms will still be able to claim CITB grants and support for their training and skills development.

CITB’s proposal to raise the threshold came out of discussions earlier this year with construction employers on industry priorities and funding. Views from employers have been built into CITB’s Levy Proposals for the 2021 Levy Order and Strategic Plan 2021-25, which have been submitted to the Department for Education (DfE) for consideration.  

A consultation by the CITB showed that 85% of employers supported an option to increase the Levy exemption threshold. Approximately 35,000 employers are already exempt from paying Levy under the current system, with the proposed threshold increase taking this up to 40,000. 

CITB is also confirming its proposals to halve levy rates in 2021-22, cutting next year’s Levy bills by 50%. The proposed rates are PAYE at 0.175% and Net CIS at 0.625%.      

Steve Radley, CITB policy director, said: “Taking 5,000 of the smaller employers out of Levy payment is another measure to help deliver on our priority to help employers stabilise and then return to growth. 

“We are pleased to confirm that we have submitted proposals to halve Levy rates for next year. Later this month we will publish our Strategic Plan that will set out how we plan to invest the Levy to support the recovery.” 

Comments

Would be really good if the companies paying into the CITB actually got a vote. I have to pay for training twice in my company because all the training systems are flawed. Why am I forced to pay into something I never use ? It is a disgrace having to pay for other companies training. What does the CITB do for me? Absolutely Nothing ! Takes my money so they can squander it on whatever they squander it on !

Dave Robertson, 13 September 2020

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