The Industrial Training Levy (Engineering Construction Board) Order 2000

Imposition of levy

3.—(1) The levy to be imposed by the Board on employers in respect of the thirty-sixth levy period shall be assessed in accordance with the provisions of this article.

(2) The levy shall be assessed by the Board separately in respect of each establishment of an employer, but in agreement with the employer one assessment may be made in respect of any number of such establishments, in which case those establishments shall be deemed for the purpose of that assessment to constitute one establishment.

(3) Subject to the provisions of this article the levy on each employer shall be assessed by the Board in respect of the emoluments and net labour-only payments paid by him to all persons to whom paragraph (4) below applies employed by the employer in the thirty-sixth base period at relevant establishments of his (that is to say, any engineering construction establishment or establishments, or any establishment or establishments comprising engineering construction activities other than an establishment or establishments of an employer who is exempt from the levy by virtue of articles 4 and 5 of this Order), and the amount of the levy shall be as specified in paragraph (5) below.

(4) This paragraph applies to–

(a) in the case of an engineering construction establishment, all persons employed;

(b) in the case of an establishment comprising engineering construction activities, all persons employed wholly or mainly in engineering construction activities.

(5) Subject to articles 4 and 5 of this Order the levy assessed in respect of any establishment referred to in paragraph (3) of this article shall be the aggregate of–

(a) an amount equal to 1.5 per cent of the sum of–

(i) the total emoluments of all site employees employed in the thirty-sixth base period at or from the establishment by the employer, and

(ii) the total net labour-only payments made in the thirty-sixth base period for site employees;

where that sum exceeds £75,000; and

(b) an amount equal to 0.18 per cent of the sum of–

(i) the total emoluments for all off site employees employed in the thirty-sixth base period at or from the establishment by the employer, and

(ii) the total net labour-only payments made in the thirty-sixth base period for off site employees;

where that sum exceeds £1,000,000.

(6) For the purposes of paragraph (5) of this article the net labour-only payments during the thirty-sixth base period is the difference between labour-only payments and labour-only receipts during that period (and where labour-only receipts exceed labour-only payments the net labour-only payments shall be zero) and for the purposes of this paragraph–

(a) “labour-only payments” in any period means the sum which (rounded down where necessary to the nearest £1) represents all payments (including payments for the incidental use of tools) made by the employer during the period under labour-only agreements for services rendered to him in his trade or business carried out at or from the establishment; and

(b) “labour-only receipts” in any period means the sum which (rounded down where necessary to the nearest £1) represents all payments (including payments for the incidental use of tools) received by the employer during the period under labour-only agreements for services rendered by him or on his behalf in his trade or business carried out at or from the establishment.