About levy

An Introduction to Levy

All employers in the construction industry are required by law to complete an annual CITB-ConstructionSkills Levy Return.

The resulting Levy is used to help deliver:

Our purpose is to build a fully skilled and professional UK construction industry - working safely and delivering value.

Why we need the Levy

The levy was introduced in the 1960s to make sure our industry invested enough in attracting and training new entrants. It also ensures that the existing workforce is equipped with the skills to ensure construction projects are completed safely, on time, to cost and to the highest standards.

Five reasons the industry needs the Levy:

  1. Ensuring sufficient training and skills development – incentivising employers to train through the grant scheme, and other funding designed to encourage training
  2. Sharing the cost of training in a highly mobile industry – those that don’t regularly train subsidise those that do to drive up standards in the industry overall
  3. Providing industry-specific training not available elsewhere – specialist trades get the training provision and apprenticeships they need
  4. Attracting and supporting new entrants to the industry – levy funds are used to support high profile campaigns to improve the image of the industry, qualifications in schools and colleges, skills competitions to showcase construction careers and grants to support new apprentices and graduates.
  5. Preventing skills gaps and shortages – investment in skills and training is maintained during the peaks and troughs of industry output. As a result, skills gaps and shortages are managed and bad employment practices, e.g. poaching and over-reliance on migrant labour, is avoided.

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 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.

How it works

Every April we ask all employers on our register to complete a Levy Return. Your levy assessment is based on information about your workforce and your wage bill for the previous financial year.

You can complete your CITB-ConstructionSkills Levy Return online or you can complete a paper Levy Return.

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