The CITB Levy Explained: What UK Construction Businesses Actually Pay

You've just received a letter from CITB telling you that your levy assessment is due. The numbers don't quite make sense, you're not sure if you even have to pay it, and you've heard other contractors grumbling about it in the canteen. Sound familiar?

The CITB levy is one of those things most small construction businesses know they're supposed to deal with but few fully understand. This is how it actually works, and how to make sure you're not paying in without claiming anything back.

What the CITB Levy Is

The Construction Industry Training Board (CITB) is a statutory body established under the Industrial Training Act 1982. Its job is to support training and skills development across the UK construction industry. The levy is how it's funded.

Every construction employer above a certain threshold is required to register with CITB and pay an annual levy based on their wage bill. The money goes towards training grants, apprenticeship funding, and support for industry qualifications like the CSCS card scheme.

Unlike voluntary industry memberships, the CITB levy is statutory. If your business falls within scope, you don't get to opt out.

Who Has to Pay

You're liable for the CITB levy if your business carries out construction work (as defined in the Industrial Training Act) and you pay wages above the small employer threshold.

The threshold is based on your combined annual wage bill — both PAYE employees and net CIS subcontractor payments count towards it. If your combined total is £120,000 or less, you're exempt as a small employer. Above that, you pay.

Construction work is defined broadly. It includes building, civil engineering, mechanical and electrical installation, demolition, scaffolding, roofing, plastering, painting, and most specialist trades. If you're not sure whether your work counts, CITB publishes a detailed scope list on their website.

Current Levy Rates

The levy is calculated as a percentage of your wage bill, split into two categories:

• PAYE employees: 0.35% of gross pay
• Net CIS subcontractor payments: 1.25% of net payments made

So if your business pays £200,000 in PAYE wages and £100,000 in net CIS subcontractor payments, your levy would be:

• PAYE: £200,000 x 0.35% = £700
• CIS: £100,000 x 1.25% = £1,250
• Total: £1,950

The higher rate on CIS payments reflects the fact that those workers also benefit from CITB-funded training but aren't directly employed by the levy-paying business.

The Small Employer Exemption

If your combined annual wage bill (PAYE plus net CIS) is £120,000 or below, you're exempt from paying the levy. However, you should still register with CITB, because registration gives you access to training grants — even if you don't pay a penny in levy.

This is the part many small contractors miss. You can claim grants for training your workers even if you're below the threshold. More on that below.

What the Levy Funds

CITB uses levy income to fund:

• Training grants: direct payments to employers who train their workforce (short courses, NVQs, apprenticeships)
• Apprenticeship programmes: funding for construction apprenticeships across all trades
• CSCS scheme support: the card scheme that most sites require for access
• Industry standards and qualifications: developing and maintaining training standards
• Skills forecasting: research into what skills the industry will need in future

Whether you agree with how efficiently CITB spends the money is another matter, but the principle is that what goes in should come back out to the industry in training support.

How to Claim Training Grants Back

This is where it gets practical. If you're registered with CITB and you send your workers on eligible training courses, you can claim a grant for each completed course. Grants vary by course type, but typical values range from £30 to £600 per achievement.

Examples of grant-eligible training include:

• Health and safety courses (SMSTS, SSSTS, first aid)
• Trade-specific NVQs and SVQs
• Plant operator training (CPCS)
• Asbestos awareness
• Working at height
• Fire safety

To claim, you log into your CITB online account, submit the training details, and the grant is paid directly to your business. The process is straightforward, but you need to submit claims within 52 weeks of the training being completed.

Many small firms pay their levy, send their people on training courses, and never claim a penny back. If that's you, you're leaving money on the table. Keeping accurate records of all training your team completes — dates, providers, certificates — makes grant claims easy. A centralised system like ComplianceVault helps you track training records alongside your other compliance documents, so nothing slips through the cracks when it's time to claim.

The Assessment and Payment Process

Each year, CITB sends you a Levy Assessment Return form. You report your total PAYE wages and net CIS payments for the previous tax year. CITB calculates your levy based on the figures you provide and issues an assessment notice.

Payment is typically due in instalments, though you can pay in full if you prefer. CITB offers direct debit arrangements to spread the cost.

Key dates to remember:

• Levy Return deadline: usually around late spring (CITB will confirm exact dates)
• Assessment notices: issued after your return is processed
• Payment due dates: set out in your assessment notice

Late returns can result in CITB estimating your levy based on previous years — which may not be in your favour.

The Levy Consensus Process

Every few years, the construction industry votes on whether to keep the CITB levy. This is called the levy consensus process, and it's required by law under the Industrial Training Act. CITB must demonstrate that a sufficient proportion of the industry (by number and by levy value) supports the continuation of the levy.

The most recent consensus was held in 2025, and the industry voted to continue the levy. If you're registered with CITB, you get a vote. It's worth participating — this is the industry's mechanism for holding CITB accountable for how it spends levy income.

Practical Advice

• Register with CITB even if you're below the threshold — you can still claim training grants
• Submit your Levy Return on time: avoid estimated assessments
• Track all training your workers complete, including short courses and refreshers
• Claim your grants within the 52-week window — set a reminder
• Keep your contact details updated with CITB so you don't miss correspondence
• Vote in the consensus when it comes around — it's your say on whether the levy continues

Summary

• The CITB levy is a statutory charge on UK construction employers with a combined wage bill above £120,000, calculated at 0.35% of PAYE and 1.25% of net CIS payments.
• Even if you're below the threshold, register with CITB to access training grants worth up to £600 per course.
• Claim grants for every eligible training course your team completes — most small firms don't, and they should.
• Submit your Levy Return on time each year to avoid estimated assessments and potential overpayment.
• The levy is subject to an industry-wide vote every few years — participate to have your say.