blog header image

Posted : 26 Jun 2020 at 10:18:14
Category: Important Announcement

Share this article

CITB has revealed plans to cut levy bills by 25% over the next two years and give cash-strapped contractors more time to pay.

Employers will continue to have a payment holiday on the levy until September and then up to a full year to pay the 2020/21 levy.

CITB will also offer a 50% discount on the 2021/22 levy rate meaning employers will pay 18 months’ levy out of 24 making an overall saving of 25% across two years.

Practical example of how the changes affect contractors

An employer with an average annual levy bill of £1,200 would normally pay £2,400 over 2020-22. Instead, they will pay nothing from April to August this year and then take advantage of spreading the costs – £100 per month up to February 2022, paying £1,800 overall

Chief Executive Sarah Beale said: “This represents a radical plan of action that balances the need for a reduction in the Levy at this time, alongside vital investment in the skills needed by employers now and in the future.

“It is the result of hundreds of conversations with employers across the length and breadth of Britain and I’m confident it meets the sector’s immediate needs.

“We are committed to making the Levy work hard to protect apprenticeships and support hard-pressed employers as they equip themselves for the challenges and opportunities ahead.”

The CITB also said it would not be holding its planned triennial consensus consultation this year when the industry is given a chance to vote on the future of the organisation.

It will now seek the views of industry employers and federations about the development of a new strategic plan, covering 2021-23, with the plan expected to be published in September.

Beale said: “We have spoken to employers and federations and most have suggested that they want us to focus full-time on helping the industry meet the challenges posed by Covid.

“We have confirmed  with the Department for Education that we will not run the usual Consensus process and instead we will speak to employers and industry groups to seek their views on our plans for next year.”

The move has angered some trade federations.

Nick Sangwin, National Chair of the Federation of Builders said: “The CITB has announced a major shake-up in its approach to delivering skills and training, cutting swathes of projects and programmes without giving industry any say in its approach, either this year or next.

“While the temporary cut in Levy is warmly welcomed and will be helpful, CITB’s plans for its future support of industry will be critical and must be put to industry.

“We cannot have a situation whereby the CITB avoids accountability at the most crucial time in our industry’s fragile recovery. Two years is too long to wait and we will be making that representation to the Government”.

As a result of these moves CITB said its levy income over the two-year period, 2020-22 will fall by £166m.

CITB’s cash reserves, which stood at £95m, are expected to fall to £17m by the end of August and to £8m by the end of March.

 

Original Source - Construction Enquirer

SIMILAR NEWS

blog header image
IMPORTANT ANNOUNCEMENT
THE GOVERNMENT LAUNCHES £2 BILLION FUND CALLED KICKSTART SCHEME

The Kickstart Scheme provides funding to employers to create job placements for 16 to 24 year olds. The government has introduced a new Kickstart Scheme in Great Britain, a £2 billion fun ...

blog header image
IMPORTANT ANNOUNCEMENT
ROCKY ROAD AHEAD FOR VANS REDEFINED AS CARS

If modified crew-cab vehicles should now be treated as cars for benefit in kind purposes, what does this mean for input VAT and capital allowances? Helen Thornley investigates the wider tax implicatio ...

blog header image
IMPORTANT ANNOUNCEMENT
CLOCK IS TICKING TO REPAY CORONAVIRUS GRANTS

Self-employed individuals, and employers, have 90 days to inform HMRC that they have over-claimed the SEISS or CJRS grants and repay any excess before penalties apply.  Any incorrect CJRS gr ...

blog header image
IMPORTANT ANNOUNCEMENT
TAX CREDITS DEADLINE: CUSTOMERS AT RISK OF LOSING OUT

Customers whose circumstances have changed in the last year or who have received a letter to reconfirm their income details must contact HMRC before 31 July. Tax credits customers only have until 31 J ...

blog header image
IMPORTANT ANNOUNCEMENT
OFF-PAYROLL APRIL 2021 PRIVATE SECTOR ROLLOUT NOW A CERTAINTY

David Chaplin of Contractor Calculator reported last night the following after the four-year loss against Off-Payroll Rules due to come in as of April 2021. David wrote; The April 2021 rollout of the ...

blog header image
IMPORTANT ANNOUNCEMENT
BANK OF ENGLAND AVOIDS NEGATIVE INTEREST RATES BUT ADDS £100BN QE

The Bank of England (BoE) has not cut interest rates into negative territory but has signalled a significant expansion of its quantitative easing (QE) measures. The bank’s Monetary Policy Commit ...

business-directory Business Directory
smartbusinessdirectory Payroll Services Business Directory
truebusinessdirectory payroll-services Directory
payroll-services Directory