17.01.17 CITB unveils new Levy proposal
17 January 2017
17 January 2017
The CITB is proposing a levy cut which would see an across the board reduction in the Levy for all firms. This follows industry criticism due to the apprenticeship levy taking effect from April this year with some companies having to pay both levies.
The proposal would see the PAYE Levy on the direct workforce cut from 0.5% to 0.35%, however there would be no change in the 1.25% levy charged on the net subcontract workforce.
The new Levy offer has been developed with input from the industry and in agreement with the Levy Working Party. To renew its Levy Order from the Government, the CITB must demonstrate there is industry consensus that it should continue to collect a levy for training funding. This will be sought in August and September this year, with a Government decision expected by February 2018. Subject to agreement from industry, the new Levy would come into effect from April 2018.
Sarah Beale, CEO at the CITB, commented that this proposal is the best option and she would like as many employers as possible to share their views because she wants to ensure that the CITB offering is relevant, makes a real difference and delivers value for money.
Aspire comment
The proposed changes to the levy are disappointing and won’t alter the Levy bill drastically for those employers who are registered under the CITB Levy. With the introduction of the apprenticeship levy, more should be done to ensure that companies are not put under financial strain having to fund both levies. It will be interesting to see what the industry feedback is as many employers train workers outside of the levy system, therefore they do not use the see the benefits of the training funding.
Are you registered to pay the CITB Levy? Are you an employer engaged wholly or mainly in construction activities? Call Aspire on 0121 445 6178 or email us at enquire@aspirepartnership.co.uk to see how Aspire could help you assess whether you should be registered for the CITB Levy or, whether you are wrongly registered.