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- By Andy Smith
- Construction Manager Mag
The Construction Industry Training Board (CITB) will remove 5,000 smaller businesses from paying the Levy next year under new proposals submitted to government last week.
The CITB plans to raise the Small Business Levy Exemption,
lifting employers’ wage bill threshold from £80,000 to £120,000.
The firms will still be able to claim CITB grants and
support for their training and skills development.
CITB’s proposal to raise the threshold came out of discussions earlier this year with construction employers on industry priorities and funding. Views from employers have been built into CITB’s Levy Proposals for the 2021 Levy Order and Strategic Plan 2021-25, which have been submitted to the Department for Education (DfE) for consideration.
A consultation by the CITB showed that 85% of employers
supported an option to increase the Levy exemption threshold. Approximately
35,000 employers are already exempt from paying Levy under the current system,
with the proposed threshold increase taking this up to 40,000.
CITB is also confirming its proposals to halve levy rates in
2021-22, cutting next year’s Levy bills by 50%. The proposed rates are PAYE at
0.175% and Net CIS at 0.625%.
Steve Radley, CITB policy director, said: “Taking 5,000 of
the smaller employers out of Levy payment is another measure to help deliver on
our priority to help employers stabilise and then return to growth.
“We are pleased to confirm that we have submitted proposals
to halve Levy rates for next year. Later this month we will publish our
Strategic Plan that will set out how we plan to invest the Levy to support the
recovery.”