How is CITB Funded?

The Construction Industry Training Board (CITB) is primarily funded through the CITB Levy, a statutory levy collected from construction industry employers in the UK. The CITB Levy is collected from all UK construction industry employers with a wage bill in excess of £120,000 p.a.

How does the CITB Levy work?

All UK based construction companies become compulsory liable to pay a sliding scale CITB Levy - when they meet specific thresholds based on their total annnual wage bill (payroll). The fees collected are managed by the CITB, which is a non-departmental public body and is primarily funded through the levy. The surplus Levy funds are reinvested in training grants, development programs, and sector-specific initiatives. The levy enables the CITB to invest in training and workforce development for the construction sector - and employers (whether contributors or not) and individuals - to access grants and funding from the CITB.

How to access grants and funding

► Access to 70% to 100% Grants and Funding via the CITB Employer Network

► Grants and funding are 'easy and quick' to access

► RISK will help you navigate the process

More about the CITB and how the Levy is funded

A construction company is compulsory liable to pay the CITB Levy if its total payroll exceeds £120,000 per year. Smaller companies below this threshold are exempt, while mid-sized companies receive a reduced rate. The levy ensures that all companies benefiting from the skilled workforce in construction contribute fairly to its training and development.

Here’s a detailed breakdown of when this obligation kicks in:

► 1 - Payroll Thresholds for CITB Levy Liability

The CITB Levy is based on the total gross payroll (including wages, salaries, and other taxable payments to employees and certain subcontractors).

Below £120,000 per year:

Exempt from paying the levy.
The company is still required to complete an Annual Levy Return, even if no levy is payable.

Between £120,000 and £399,999 per year:

Companies in this range pay a reduced rate on their wage bill.
The reduced rate applies as an incentive for smaller businesses to contribute without undue financial strain.

Above £400,000 per year:

Companies are required to pay the full levy rate on their total wage bill.

► 2 - Levy Rates

Construction Work Payroll:

0.35% of the total gross payroll for employees engaged in construction activities.

Non-Construction Payroll:

0.21% of the gross payroll for administrative and non-construction staff.
Payments made to Construction Industry Scheme (CIS) subcontractors who are not self-employed may also be included in the calculation.

► 3 - What Determines a Construction Company?

A company is liable for the CITB Levy if:

It is engaged in construction-related activities as defined by CITB, which includes a broad range of activities like building, civil engineering, installation, and maintenance work.
It falls within the CITB’s scope of work, which covers most businesses in the construction sector.

► 4 - Key Points to Remember

Annual Levy Return:

All companies that fall under CITB’s jurisdiction, even those exempt from paying the levy, must complete and submit an Annual Levy Return. This determines whether they are liable and how much they must pay.

Grant Eligibility:

Employers who pay the levy (or are registered with CITB) become eligible for CITB grants to subsidise training and apprenticeships, providing a significant return on their investment.
Employers who are exemt, or individuals, can access the CITB Grants and Funding - call us on 01623 749718 us to find out how

► 5 - Exemptions

Companies with a total wage bill below £120,000 are exempt.
Certain industries or businesses not engaged in construction-related activities may fall outside CITB’s scope, even if they occasionally perform construction work.