Levy Proposals for the 2021 Levy Order

Below are the current Levy Proposals which have been submitted to Parliament.

Context:

• The 2021 Levy Order will be for one year only
• The CITB Board has opted to submit Levy Proposals to the Government without the usual Consensus process
• The Board has also said that the Levy rates in 2021 will be reduced by 50% to support employers during the COVID-19 crisis.

Levy Proposals:

• Levy rates to remain the same as 2018 Levy Order so:
  • PAYE @ 0.35%
  • Net CIS @1.25%
• However the Board has already agreed that the rates in 2021 will be reduced by 50% so the actual proposals will be:
  • PAYE @ 0.175%
  • Net CIS @ 0.625%
• Small Business Levy Exemption – Increased from £80k to £120k
• Small Business Levy Reduction – Retained at the current level of £400k
• No other changes are proposed.

Earlier this summer, CITB sought views from industry leaders, stakeholders and a cross section of construction employers on our thinking of what the priorities for construction are over the next few years and how to fund them.  These views were then built into the Levy Proposals for the 2021 Levy Order and also the Strategic Plan 2021-25 - more details can be found here.