Builders will probably now be aware that the basis for calculating how much their annual payment is under the Construction Industry Training Board (CITB) has recently changed:
|Old Basis||New Basis|
|Levy on employees||0.5%||0.5%|
|Levy on labour only sub-contractors||1.25%||0%|
|Levy on payments to sub-contractors with Net CIS status||0%||1.25%|
|Levy on payments to sub-contractors with Gross CIS status||0%||0%|
|Wage bill threshold for 50% levy reduction||£80,000 – £100,000||£80,000 – £400,000|
With 18% of those liable to pay the CITB levy predicted to now pay more, consideration should perhaps be given to:
- Only engaging sub-contractors with gross, instead of net, CIS status.
- Taking staff off the books.