How to register with the CITB for the levy

If you operate a business in the construction industry, you are legally required to register with the Construction Industry Training Board (CITB) if your annual wage bill meets certain criteria. Even if your business is small, you must register so the CITB can assess whether you need to pay the "Levy," which is a statutory charge used to fund training and skills development across the UK construction sector.

What is the CITB Levy?

The CITB Levy is not a voluntary subscription; it is a legal requirement for construction employers. The money collected is pooled to provide grants for apprenticeships, safety training, and professional development. By paying into the system, you gain access to these grants, which can help offset the cost of training your own team.

Step 1: Check if you are "In Scope"

The first step is determining if your business activities fall under the CITB's definition of construction. Generally, if your primary business is building, civil engineering, or specialist trades like bricklaying, joinery, or roofing, you are considered "in scope."

Step 2: Calculate your total wage bill

The CITB looks at your "taxable emoluments" (wages) to decide if you owe any money. You need to calculate two figures from the previous tax year:

• PAYE Wages: The total gross pay of all employees on your payroll.
• Net CIS Subcontractors: The total payments made to subcontractors from whom you deduct CIS tax (labour only).

Step 3: Understand the thresholds

While registration is mandatory for almost all construction employers, you only have to pay the levy if your wage bill exceeds specific limits:

Total Wage Bill	Levy Status
Under £120,000	Exempt: You must register and file a return, but you pay £0.
£120,000 – £399,999	Small Business Rate: You receive a 50% reduction on your levy bill.
£400,000 or more	Full Rate: You pay the standard levy percentage.

Step 4: Complete the registration

To register, visit the CITB website and search for the "New Employer Registration" form. You will need to provide:

• Your business legal name and address.
• Your HMRC office and reference numbers (PAYE and/or CIS).
• A description of your business activities.
• Your date of commencement.

The Annual Levy Return

Once registered, you will receive an Annual Levy Return every spring. You must complete this every year by the deadline (usually June or July). Even if you know you are below the £120,000 threshold and won't owe anything, failing to submit the return can result in the CITB making an "estimated assessment," which might be higher than what you actually owe.

Top Tip: If you find you have to pay the levy, make sure you take advantage of it! Use the CITB's "Grant Scheme" to claim back money for training your staff or yourself. This can often cover a significant portion of your training costs.