Completing a Levy Return

Levy Return options

If you are registered you can:

All construction employers on our register are required to complete a Levy Return.

Do I need to pay / how much do I pay?

Employers in the construction industry with a total wage bill of £80,000 or more are liable to pay Levy.

Total PAYE for year + total payments made to subcontractors engaged under a labour-only agreement for year = X

  • If X is £79,999.99 or less you are not liable for Levy (note: you still need to complete a Levy Return).
  • If X is £80,000 or more but less than £100,000 please see box below for new Small Business Levy Reduction
  • If X is £80,000 or more you will pay: 0.5% for Total PAYE for year + 1.5% total labour only sub-contract payments for year*

* = This figure is only an indication of the amount of Levy you are liable for – we will calculate the exact figure during your levy assessment.

Small Business Levy Reduction

This is new to the 2012 Levy Order, and is designed to assist those small employers whose total PAYE and LOSC falls just above the Small Business Levy Exemption level.

If an employer makes total payments to PAYE and LOSC of £80,000 or more, but less than £100,000 then their Levy liability will be reduced by 50%

Levy rateAmount
Amount you paid to employees on payroll (PAYE)£45,000@ 0.5%= £225
Amount you paid to self-employed workers or sub-contractors for labour only (LOSC)£45,000@ 1.5%= £675
Subtotal= £900
Less Small Business Levy Reduction@ 50%= £450
Levy Payable= £450

Levy Return guidance notes

The following guidance notes are provided to assist in submiting your Levy Return:

EnglishWelsh/Cymraeg
Current Period2012 Levy Return Guidance Notes2012 Levy Return Guidance Notes
Previous Period2011 Levy Return Guidance Notes2011 Levy Return Guidance Notes

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