CITB

CITB

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Dear all, I have done a search on the site and have found a few bits of information about CITB levy - however, it looks like the last one was posted around May 05, so I wondered if anyone had any insights since then??

We have received a levy form for the year 04-05 and 05-06, this is actually the first we knew about it. I have just started to work out the figures, and at first sight it looks like we will be due to pay over an extremely significant amount of money, this is unplanned and unexpected, and I wondered if there is anything we can do to help our position?

Any advise would be welcome.
Laura

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By dswinnerton
05th Jul 2006 12:27

CITB Levy
I assume you are a construction company that employs labour-only subcontractors then. I believe the levy only applies if this is the case.

The levy is a legal requirement. The best you can achieve to mitigate the cost is 1) maximising available grant claims and/or 2) look to recover at least part of the cost from your labour (not traditionally very popular!)

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By AnonymousUser
05th Jul 2006 13:33

What trade?
Depends on what trade also, within the building industry. What do you do and how many employees or subbys?

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By User deleted
05th Jul 2006 17:54

Construction Co
Hi David and Zebadiah, you are right in suggesting that we are a construction company and we do appoint some labour only suppliers during the course of our construction.

Your point about recovering the levy (or part of it) from the supplier themselves is an interesting one David, and when I spoke to CITB they suggested it is quite common for companies to do this, however, I am just trying to understand it from our suppliers point of view, does it then mean that they are effectively making 1.5% less profit on the jobs they do for us, ie they cannot offset this deduction with what they have to pay over at their end can they??

Thanks in advance from your help.

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By dswinnerton
06th Jul 2006 09:26

CITB Levy
You are right that your subcontractors could not offset any deduction against levies they have to pay and therefore it would reduce their profits by whatever percentage you deducted (the reason it is traditionally not very popular!).

Good industry specific accounting software will specifically facilitate CITB deductions from subcontractors.

Dont forget that supply & fix subcontractors are excluded from the calculation.

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