Training: CITB Levy Reviewed
A MAJOR change is proposed to the CITB levy system to make it quicker and easier for employers to complete their levy return.
Following feedback from employers that the levy can be complicated and time-consuming to calculate, CITB has proposed a simplified system based on the HMRC Construction Industry Scheme (CIS) payments to sub-contractors who are paid net of tax.
The main points include:
Retaining PAYE levy at 0.5%;
No longer raising levy on payments to labour only sub-contractors (LOSC);
Introducing a levy on payments made to net CIS sub-contractors; and
Only payments made through PAYE or CIS would be liable for levy.
The NSCC training committee reviewed the impact of the proposals with CITB. For most NSCC specialist contractors, including those in the CFA, the new system should be far simpler with benefits for employers including:
No additional record keeping; employers will simply use records kept for HMRC purposes to identify both PAYE and relevant Net CIS sub-contractor figures;
Removal of uncertainty of the current system for LOSC;
Less time less expensive to complete; and
Less scope for error when completing a levy return.
Employers can use the CITB online levy calculator to assess how the proposed changes would effect their levy payments.
The new proposals are unlikely to be implemented before 2017.
This article has been reproduced from the Contract Flooring Journal. You can find them at www.contractflooringjournal.co.uk.