(This note is not part of the Order)
This Order gives effect to levy proposals of the Construction Industry Training Board (“the Board”) which were submitted to the Secretary of State for Business, Innovation and Skills under section 11 of the Industrial Training Act 1982 (c.10) (“the Act”).
The levy proposals were for the imposition of a levy on employers engaged wholly or mainly in the construction industry for the purpose of raising money towards the Board’s expenses.
The Board must calculate the amount of levy due in respect of each construction establishment of an employer in accordance with article 7. This calculation is carried out with reference to the base periods in article 4. This Order introduces a new method of assessment in relation to sub-contractors for the third levy period. In relation to that period, part of the amount of levy paid will be based on the relevant part of the contract payment upon which the sub-contractor is liable to deduction of sums on account of tax under the Construction Industry Scheme (see Chapter 3 of Part 3 of the Finance Act 2004 (c.12)).
The total amount of levy payable by the employer is the aggregate amount of levy for all the employer’s construction establishments. If this aggregate amount is £80,000 or more but less than £100,000 in the first and second levy periods or less than £400,000 in the third levy period then a 50 % reduction will apply (article 8).
An employer assessed to levy will receive a written assessment notice from the Board setting out the amount of levy payable by that employer (article 10). Payment of the levy must usually be made within one month of service of the assessment notice by the Board (article 14). An assessment notice may be withdrawn by the Board and the Board may also serve amended assessment notices (articles 11 and 12).
Article 9 makes provision for employers employing a small number of employees to be exempt from the levy.
An employer assessed to levy may appeal against that assessment. An appeal must normally be made within one month of the date of service of the relevant assessment notice by the Board (article 15).
An impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the Department for Business, Innovation & Skills, 1 Victoria Street, London, SW1H 0ET and is published with an Explanatory Memorandum alongside the instrument on www.legislation.gov.uk.