Levy deduction warning for self-employed

CITB-Construction Skills is urging self-employed construction workers to seek legal advice if they have CITB levy deductions taken from their pay packets. It has been revealed that some contractors are passing on their own levy payments to smaller subcontractors, including labour-only subcontractors.

The sector skills council along with the industry training board for construction industry have joined forces with 10 leading trade associations in an attempt to find a solution and put an end to this happening.

In some cases employers are labelling the charges ‘deduction for CITB levy’ or ‘amounts in respect of CITB levy’, while in other cases contractors have sought to make a profit by charging more than the actual CITB-ConstructionSkills levy.

CITB-ConstructionSkills chief executive Mark Farrar said: “CITB-ConstructionSkills is the body appointed by parliament to raise and collect the Industrial Training Levy from employers in the construction industry under the Industrial Training Act. The Act does not give authorisation for employers to make deductions from any amounts paid to a labour-only subcontractor or other worker.

“If your employer is making these types of deductions without your consent, you may wish to seek independent legal advice. CITB-ConstructionSkills is working to deliver the right skills for economic growth locally and nationally and the levy we collect provides the funds to help employers up-skill their workforce and make their businesses succeed and grow,”

Usually, the levy money goes towards training grants and other benefits which help employers train their staff and develop their businesses. Grant funding last year totalled £113m which benefitted 19,058 employers.


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