PRESS RELEASE: CITB Consensus Vote Approaches

Most of our members will be aware that HAE are a ‘Consensus Federation’ in relation to all matters CITB, and all those members who are registered to the CITB Levy Scheme have right to express their views on the future of CITB.

The CITB Consensus process is entering a critical phase where we and other federations ask members within scope whether or not they support the levy proposals. HAE EHA will ask the key question provided by CITB but also take the opportunity to ask members about several other skills related topics when we circulate the survey in a few weeks.PLEASE LOOK OUT FOR THE SURVEY!

We have attended various CITB meetings about the future direction of the organisation and they have now advised what the key ‘statutory’ question is:

 CITB regularly measures the level of support from employers on how the Levy is calculated and this question is about the proposed rates and thresholds for how this will be done in 2018, 2019 and 2020.

The amount of CITB levy you pay is based the amount you pay your workers in a year. This includes employees paid through Pay As You Earn (PAYE) and also Construction Industry Scheme (CIS) subcontractors who you deduct CIS tax from. It is not applied to CIS subcontractors who you don’t deduct CIS tax from.

The current rates are

PAYE contribution of 0.5%

Net CIS contribution of 1.25%

And the payment thresholds are:

  • Employers with a wage bill of less than £80k are exempt
  • Employers with a wage bill of between £80k and £399k receive a 50% deduction on the levy assessment
  • Employers only pay the full assessment if their wage bill is £400k or above
  • For 2018-2020 the proposal is that for all levy payers:
  • The PAYE contribution will reduce to 0.35% (was 0.5%)
  • NET CIS contribution will remain the same (1.25%)
  • Payment thresholds will remain the same

Do you support these proposals? Yes/No

As a Consensus Federation HAE is legally required to respond on this question on behalf of its ‘levy paying’ members, therefore it is imperative that you provide us with your view.

Look out for the survey which will be circulated in early August.