30.03.12 CITB Levy Receives Parliamentary Approval for a Further 3 Year Period

30 March 2012

The CITB Levy has been approved by Parliament for a further 3 year period.

A new Levy order was approved on 19th March which will require employers in the construction industry to continue to pay the levy until 2014.

The main changes affected by the new order are as follows;

·         The new order has amended the interpretation of “labour only agreement” to clarify that contracts which require substantial use of plant or specialist equipment are outside the definition of a labour only agreement.

·         The amount of levy payable by employers whose labour only agreements amount to payments over £80,000 but below £100,000 will be reduced by 50%.

·         Payments to persons engaged

o    in part time work of less than 8 hours per week or

o    employed wholly in agriculture or

o    employed wholly in the supply of food or drink

o    are no longer excluded from assessment of the amount of Levy payable.

·         Whilst a company director remunerated solely by fees was formerly a person excluded from the calculation of the Levy this exclusion has been removed but the same affect is enabled via Clause 2 of the new Order which defines emoluments as excluding fees which are paid to a company director who is remunerated solely by fees.

A full copy of the new Levy Order can be accessed at http://www.legislation.gov.uk/ukdsi/2012/9780111521007