How much annual CITB Levy you pay is based on your total wage bill (the amount you pay your workers in a year).
For the purposes of the current Levy, workers include employees paid through the payroll and Construction Industry Scheme (CIS) subcontractors who you make CIS deductions from.
The levy is not applied to CIS subcontractors who you don’t make CIS deductions from.
Levy rates for the 2021 Levy Assessment are the same as those for the 2019 Levy Assessment. The rates are:
- 0.35% on payroll staff (including furlough payments made under the HMRC Coronavirus Job Retention Scheme (CJRS))
- 1.25% on CIS subcontractors who you make CIS deductions from (Net paid CIS)
Proposed Levy rates for 2021 Levy Assessment are expected to be confirmed in May 2022
Reduction for small businesses
If your total wage bill (payroll and Net CIS) is between £120,000 and £399,999 your organisation will receive a 50% reduction on your levy. This is called the ‘Small Business Levy Reduction’.
Exemption for small businesses
If your total wage bill (payroll and Net CIS) is under £120,000, your organisation won’t have to pay the levy. This is called the ‘Small Business Levy Exemption’.
You must still complete a Levy Return even if you don't need to pay the Levy, as it is a statutory requirement.
Payment of the Levy Assessment
Payments in 2022 for the 2021 Levy Assessment will return to a collection period over a ten-month from July 2022 to April 2023.
Find out more about how to pay the Levy