The CITB Levy in England, Wales and Scotland

Who this guide is for

Employers in England, Wales and Scotland whose business is in construction, and anyone doing their books, who want to know whether they must register with the Construction Industry Training Board (CITB), send a Levy Return, pay the CITB levy, claim a grant or appeal an assessment. It covers:

• Who must register with CITB, and what counts as an employer and as construction.
• How the levy is worked out, and the small business exemption and reduction.
• The yearly Levy Return, the assessment notice and paying.
• Qualification achievement grants, in outline.
• Disagreeing with an assessment, and the time limit for an appeal.

What this guide does not cover

• Construction employers in Northern Ireland: CITB NI is a separate board with its own levy. See the Northern Ireland guide.
• Engineering construction, which has its own board (the ECITB) and its own levy: use the ECITB levy checker.
• Construction Industry Scheme (CIS) tax deductions and gross payment status: ask HMRC.
• Grants for apprenticeships and short courses, and Employer Networks funding: ask CITB.
• Your other duties as an employer, such as pay, contracts and dismissal: use the employer obligations checker.
• CSCS and other site card schemes: ask the card scheme.
• What will happen after the 2026 consultation on merging CITB and the ECITB.

⚖ At a glance

• If more than half of your workforce's time goes on construction work, you must register with CITB, even if you will never owe any levy.
• Every registered employer sends a Levy Return each year, and skipping it can lead to an estimated bill.
• The levy is 0.35% of what you pay your payroll staff plus 1.25% of what you pay subcontractors you make CIS deductions from.
• For the 2026 Levy, a total wage bill below £150,000 means nothing to pay, and from £150,000 up to £499,999 the levy is halved.
• You have one month from the assessment notice to appeal to an employment tribunal.

The questions that decide the answer

1. Is your business wholly or mainly in construction? It is if construction activities take up more than half of your total employees' time, counting subcontractors. Yes: you must register with CITB and send a Levy Return every year. No: the CITB levy does not apply. CITB's list of what counts as construction is not the everyday meaning (see "Am I in scope?").
2. Do you have anyone working for you? For the levy, an employer is a person or company with one or more employees, counting staff on the payroll and subcontractors. With neither, you are not an employer for the levy.
3. What was your total wage bill for the tax year the levy is based on? Add payroll pay to payments to net paid (taxable) CIS subcontractors. For the 2026 Levy: no levy under £150,000; a 50% reduction from £150,000 to £499,999; the full levy from £500,000.
4. Is the work in Great Britain or Northern Ireland? This guide covers England, Wales and Scotland only. Northern Ireland has its own board and levy.

If one of these facts is missing, the answer depends on it and this guide does not assume it.

"Am I in scope?"

Under the Industrial Training Act 1982 and the Levy Orders made under it, CITB must raise a levy assessment on employers wholly or mainly engaged in construction industry activities.

The activities that count are set out in the Industrial Training (Construction Board) Order 1964 (Amendment) Order 1992, known as the Scope Order. CITB publishes lists of construction and non-construction activities.

CITB's examples of non-construction activities include gardening, plumbing, farming, charities, housing associations, solar panel work, skip hire and haulage. Some similar-sounding work, such as soft landscaping, is on the construction list, so check the full lists before deciding.

For the levy, "employee" includes a person engaged under a contract for services, so subcontractors count when working out whether you are an employer and whether you are mainly in construction.

If you are an employer but believe your business is not wholly or mainly engaged in construction industry activities, you can ask CITB for a levy registration review.

"Do I have to register and send a Levy Return?"

If your business is mostly engaged in construction work and you employ one or more staff or subcontractors, you need to register with CITB using its online Employer Registration Form. CITB aims to reply within 10 working days.

Once registered, you must complete a Levy Return every year until you are no longer an employer in the construction industry.

You must still send the Levy Return when you do not expect to pay anything, because CITB uses it to work out any exemption or reduction.

If you do not send a Levy Return, CITB will send an estimated assessment, which may be higher than one based on your own figures.

CITB sends out the Levy Return every May, by post, or by email if you use its online services. If you register after 31 March, your first Levy Return comes the following May.

"How much will I pay?"

The levy is worked out on your total wage bill for the levy year: what you paid staff on your payroll plus what you paid net paid (taxable) CIS subcontractors.

The rates for the 2025 Levy (assessed in spring 2026) and the 2026 Levy (assessed in spring 2027) are 0.35% of payments to payroll staff and 1.25% of payments to net paid CIS subcontractors.

For the 2026 Levy there is no levy on payments to gross paid CIS subcontractors or to labour suppliers.

Small Business Levy Exemption (2026 Levy): if your total wage bill is under £150,000 you pay no levy.

Small Business Levy Reduction (2026 Levy): if your total wage bill is between £150,000 and £499,999 your levy is reduced by 50%.

The 2026 Levy is based on the 2025 to 2026 tax year (6 April 2025 to 5 April 2026).

The 2025 Levy is based on the 2024 to 2025 tax year and was assessed in spring 2026. It has the same thresholds as the 2026 Levy: no levy under £150,000; 50% off from £150,000 to £499,999; and the full levy from £500,000.

The 2026 Levy is not assessed until spring 2027. If you got an assessment notice in 2026, check which levy period it covers: the notice must say.

The levy assessed in 2025 (2023 to 2024 tax year) had lower thresholds: no levy under £135,000; 50% off from £135,000 to £449,999; and the full levy from £450,000. The rates were 0.35% and 1.25%.

"How do I pay?"

CITB sends a Levy Assessment Notice in spring telling you how much levy you owe, if any, with your payment options and dates.

If you owe levy, you can pay it all within one month of receiving your assessment, or by Direct Debit in up to 10 interest-free monthly instalments.

"Can I claim grants?"

To apply for CITB grants you must be registered for the CITB levy. You can apply for grants from the date your registration is confirmed, and for apprenticeship grants for the 12 months before your registration.

For a qualification achieved from January 2026, the standard CITB achievement grant is £600. The higher management and supervision rates ended in December 2025, and a few qualifications have other rates.

Apply through the CITB Online Services portal within 52 weeks of the achievement date, or by email if you cannot use the portal.

This guide does not cover grants for apprenticeships or short courses, or Employer Networks funding: ask CITB or your local CITB adviser.

"I disagree with my assessment"

You can appeal against a levy assessment to an employment tribunal.

The appeal must be made within one month beginning with the date the assessment notice was served on you. If CITB serves an amended assessment notice, the month runs from the date the amended notice was served.

CITB can allow more time. If CITB does not allow more time, an employment tribunal can allow it instead.

If you think you should not be registered at all, because your business is not wholly or mainly in construction, ask CITB for a levy registration review.

"How is the levy set?"

CITB proposes the levy and asks levy-paying employers whether they support it through a process called Consensus, usually every three years. A Levy Order made under the Industrial Training Act 1982 then imposes the levy.

CITB's 2026 to 2029 levy proposals won Consensus support in 2025 and keep the rates at 0.35% and 1.25%.

In March 2026 the government consulted on bringing CITB and the ECITB together into a single Industry Training Board for England, Scotland and Wales. This guide does not cover the outcome: check GOV.UK or ask CITB.

Deadlines you must meet

• Levy Return: every year when CITB sends it in May. Fill it in and send it back, following the instructions that come with it.
• Paying in one go: within one month of receiving your assessment.
• Appealing: one month, counted from the day the assessment notice (or an amended notice) was served, unless more time is allowed.
• Grant claims: 52 weeks from the achievement date.

Money figures

• Levy rates for the 2025 and 2026 Levies: 0.35% on payroll staff and 1.25% on net paid CIS subcontractors.
• 2026 Levy: no levy below £150,000 total wage bill; 50% off from £150,000 up to £499,999; the full levy from £500,000.
• Qualification achievement grant for achievements from January 2026: £600 at the standard rate.

Where to go for help

CITB levy and grant enquiries: 0344 994 4455, levy.grant@citb.co.uk. Registration, the Levy Return, assessments, paying and grants.

Citizens Advice (England): 0800 144 8848

Citizens Advice (Wales): 0800 702 2020

Citizens Advice Scotland: 0800 028 1456

HMRC: the Construction Industry Scheme and gross payment status.

An accountant or bookkeeper: working out your payroll and net CIS totals.

Traps

• The levy is imposed on the employer, not on its workers or subcontractors.
• Being exempt does not mean you can skip the Levy Return.
• Only subcontractors you make CIS deductions from count towards the levy.
• "Construction" has CITB's own meaning. Plumbing and gardening are on CITB's non-construction list, while soft landscaping is on its construction list.
• CITB and the ECITB are different boards with different levies.
• Northern Ireland has its own board, CITB NI, with a different rate and exemption level. Do not use this guide there.
• An appeal goes to an employment tribunal, not to CITB, and the one-month limit is short.
• Do not treat the 2026 merger proposal as law.