If your business works in or around construction, the CITB Levy is something worth checking properly. Many firms assume it only applies to traditional builders, but the rules can reach further than that. CITB says employers need to register if they are wholly or mainly engaged in construction industry activities. In simple terms, that means construction work makes up more than half of the total time worked by employees and subcontractors.
What does CITB stand for?
CITB stands for the Construction Industry Training Board. It is the employer-led skills and standards body for the construction industry in Great Britain.
What is the CITB Levy?
The CITB Levy is used to help fund training and skills across the construction industry. CITB says it is required to raise a levy to support its legal purpose of encouraging training in the construction sector.
Who might it apply to?
This is where many businesses get caught out. It is not just about whether you call yourself a builder. It is about the type of work your business actually does.
If construction activities make up the main part of your business, you may need to register with CITB and complete an annual Levy Return. That can potentially affect a wide range of construction-related businesses, depending on the work carried out.
How is the Levy worked out?
CITB says the Levy is calculated using:
- money paid to workers on your payroll
- payments made to net paid, taxable CIS subcontractors.
For the 2025 Levy, assessed in Spring 2026, CITB states the rates are:
- 0.35% on payroll staff
- 1.25% on net paid CIS subcontractors
- no Levy on gross paid CIS subcontractors.
Do smaller businesses get any relief?
Yes, potentially. CITB’s levy framework includes exemption thresholds and reduced rates in certain cases, and those thresholds are set through the Levy Order. Because those figures can be updated, it is sensible to check the current position for the relevant levy year rather than relying on old guidance.
Do you still need to complete a Levy Return?
In many cases, yes.
CITB says construction businesses must send a Levy Return every year. This helps CITB work out how much Levy, if any, should be paid and helps ensure businesses can claim grants and support where available.
Why do businesses get this wrong?
The main issue is usually not the Levy itself. It is whether a business realises it may be within scope at all.
A lot of firms assume the rules only affect obvious construction companies, but CITB’s test is based on whether construction activities form the main part of the business. That is why it is important to review what your business actually does, along with your payroll and CIS position, rather than making assumptions.
How we can help
If you are unsure whether the CITB Levy applies to your business, it is worth checking early. A quick review can help you understand whether your activities are likely to fall within scope, what information CITB may need, and whether there are any levy implications linked to payroll or CIS subcontractor payments. CITB also provides online services for submitting outstanding Levy Returns and viewing previous returns and assessments.
Final thought
If your business is involved in construction-related work, the safest approach is not to assume anything. If you are wholly or mainly engaged in construction industry activities, you may need to register with CITB, complete an annual Levy Return, and review any levy due based on payroll and net paid CIS subcontractors