The Industrial Training Levy (Construction Board) Order 1987

Basic assessment rules

3.—(1) Subject to the exemptions in paragraphs 4 and 5(1) below, the amount to be assessed by way of levy in respect of a construction establishment, other than a brick-manufacturing establishment, (being an establishment carrying on business in the twenty-second levy period) shall be the aggregate of the amount (if any) by which 2% of the labour-only payments exceeds 2% of labour-only receipts and the amount of the occupational levy.

(2) For the purposes of sub-paragraph (1) above:—

(a) “2% of labour-only payments” means the sum which (rounded down where necessary to the nearest £1) represents 2% of all payments made to any persons by the employer during the period of 12 months that commenced on 6th April 1985 under labour-only agreements in respect of work carried out at or from the establishment;

(b) “2% of labour-only receipts” means the sum which (rounded down where necessary to the nearest £1) represents 2% of all payments received by the employer during the period of 12 months that commenced on 6th April 1985 from any other employers in the construction industry under labour-only agreements in respect of work carried out at or from the establishment;

(c) “the amount of the occupational levy” means the sum of the amounts (rounded down in each case where necessary to the nearest £1) produced by multiplying the appropriate amount in the third column of the appendix to this Schedule by the average number of persons employed by the employer at or from the establishment under contracts of service or apprenticeship in each relevant category and description of employment, less the amount (if any) by which 2% of labour-only receipts exceeds 2% of labour-only payments, provided that the amount of the occupational levy shall not exceed an amount equal to 1% of the aggregate of the emoluments and payments intended to be disbursed as emoluments which have been paid or are payable by the employer to or in respect of persons employed in the industry in respect of the period of twelve months which commenced on 6th April 1985.

(3) Subject to the exemptions in paragraphs 4 and 5(2) below, the amount to be assessed by way of levy in respect of a brick-manufacturing establishment (being an establishment carrying on business in the twenty-second levy period) shall be equal to 0.05% of the aggregate of the emoluments and payments intended to be disbursed as emoluments which have been paid or are payable by the employer to or in respect of persons employed at or from the establishment under contracts of service or apprenticeship in respect of the period of 12 months which commenced on 6th April 1985.

(4) For the purposes of this paragraph and paragraph 5 below “a brick-manufacturing establishment” means a construction establishment engaged wholly or mainly in the manufacture of bricks from clay or calcium silicate for building purposes but excluding bricks made for refractory purposes.