CITB has confirmed its proposals that the Construction Levy rates will remain unchanged for 2022–25. Support from industry will now be measured with a consensus until the 15th August.
CITB consulted with construction employers and industry representatives earlier this year on draft Levy Proposals agreed by the Levy Strategy Committee of employers and experts and signed off by its Board.
These are that the Levy is assessed at the pre-pandemic rates of PAYE at 0.35% and net paid (taxable) CIS Sub-contractors at 1.25%.
Approximately 40,000 employers with a wage bill below £120,000 will continue to be exempt. 14,000 employers with a wage bill of between £120,000 and £400,000 will see a 50% reduction.
It is anticipated that due to the pandemic more construction businesses could qualify for exemptions and Levy reductions due to lower wage bills.
The final stage of CITB’s three-yearly statutory consultation will ask: do you agree that the Levy Proposals are necessary to encourage adequate training in the construction industry?
Steve Radley, Director of Strategy and Policy at CITB, said:
“To support employers, Levy bills were cut by half for 2021, with the Consensus process delayed by a year to focus on supporting immediate skills needs. We have since had clear feedback from industry, including the 14 Prescribed Organisations, that CITB should proceed with Consensus this year.
We now expect significant growth in construction output and its skill needs over the next three years.
We have recently agreed a plan to help meet these needs and we are now asking industry whether it supports the Levy Proposals to finance it.”
The results of the 2021 summer consultation will be published in the autumn.
Find out more about the consensus here: www.citb.co.uk/levy-grants-and-funding
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