If you work in the construction or payroll industry you will no doubt have heard of The Construction Industry Training Board (CITB) - but who are the CITB and what is the purpose of the CITB levy?
Who are The Construction Industry Training Board?
The Construction Industry Training Board is a public body that focus on attracting talent, developing skills and setting excellent training standards within the British construction industry.
What is the purpose of The Construction Industry Training Board?
The purpose of The Construction Industry Training Board is to:
- Target knowledge and resources to develop a world-class workforce for the challenges of today and tomorrow
- Encourage new talent by promoting construction for its exciting and rewarding career opportunities
- Work with the industry to ensure training standards and qualifications are right for its needs
- Strive to provide employers with the training they want for their people when they want it
- Make it easy for levy-paying firms to retrieve funding for innovation and skills development
- Talk, listen, research, survey, question and analyse the industry to stay ahead of change and respond to the sector’s evolving needs
How does The Construction Industry Training Board work?
In order for The Construction Industry Training Board to provide the above services to the construction industry, a ‘levy’ is applied to employers that mainly engage in construction industry activities. So, if a company’s employees, contractors and subcontractors make up at least half of the workforce engaged in construction activities, then the levy applies.
How much is The Construction Industry Training Board levy?
The amount of levy a company will pay annually depends on the size of the company and their total wage bill (the total amount a company pays their employees in a year). 'Employees' includes individuals on the payroll and Construction Industry Scheme (CIS) subcontractors from whom companies make a CIS deduction.
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.
(Please note there are reductions and exemptions for smaller businesses please see www.citb.co.uk for more info).
The CITB levy is currently applied to the following types of payments:
- Employees paid by a company that are required to make levy contributions
- CIS subcontractors where the company has made CIS deductions (including labour only and supply and fit subcontractors)
*It’s worth noting, if a subcontractor has ‘gross status’ with HMRC and are paid with no CIS deductions, the levy is not applied.
How do businesses pay The Construction Industry Training Board levy?
If the levy applies to your business, you’ll receive a Levy Assessment Notice in Spring, detailing your payment date.
There are two ways to pay the levy:
- Pay monthly by interest-free Direct Debit.
- Pay in full as one lump sum. Bank details for full payment can be found on your Levy Assessment Notice.
Who benefits from The Construction Industry Training Board levy?
CITB registered companies and employers contributing to the CITB levy can apply for grants to fund employee training, skill development and increased health & safety standards.
Businesses are categorised by size from Micro (1 - 9 employees), Small (10 - 49), Medium (50 - 249) and Large (250+).
The below table shows how levy funds are distributed to construction employers of all sizes to support training:
(data from 2021-2022 annual statistics)
| Category | Micro employers | Small employers | Medium employers | Large employers | Other | Total |
|---|---|---|---|---|---|---|
| Levy funds from employers | £18.6m | £30m | £27.4m | £32.1m | £0.2m | £108.3m |
| CITB grants and support for training | £21.1m | £26.4m | £25m | £28.3m | £0.9m | £101.7m |
| Number of employers claiming grant and other support | 8,335 | 5,766 | 1,663 | 299 | 88 | 16,151 |
The Construction Industry Training Board Apprenticeships
Another huge benefit of the CITB scheme is the ability for an employer to hire an apprentice and apply for an apprenticeship grant.
Whether hired through the CITB directly or through an approved apprenticeship partner; once the apprenticeship has commenced, employers can apply for ‘attendance’ and ‘achievement’ grants of approximately £2500/year and £3500/completion respectively.
And that’s not the only benefit! By partnering with an apprenticeship scheme via the CITB, businesses will also be allocated an apprenticeship officer at the CITB to offer continuous, direct support.
With an endless list of exciting apprenticeships available, ranging from blue-collar trades such as bricklaying, carpentry and electricians, through to white-collar positions such as site managers, architects and surveyors, bringing on an enthusiastic and hardworking apprentice really is a no-brainer!
For more information on the CITB and how your business can benefit from the levy, check out the CITB website!