| CISR15600 | Action guide contents |
The Construction Industry Training Board (CITB) is an industrial
training board responsible for promoting vocational training in the
construction industry. It is empowered to impose a levy on
employers or contractors in the industry to fund its operations.
These include making grants to employers/contractors whose training
courses are approved by the CITB.
As contractors will often seek to recoup this outlay from
their subcontractors, in the context of CIS, you will normally
encounter the CITB levy in the form of a deduction made from the
gross payment due to a subcontractor. This deduction should be
excluded from the 'Gross amount of payment' shown
on a monthly return.
For example, where the agreed contract price is £1,000
(plus VAT) and the CITB levy is, say £7, the sum that should
be shown on the monthly return as the gross amount of the payment
will be £993. That is the agreed contract payment of
£1,000, excluding VAT and less a deduction of £7 for the
CITB levy.
Whether the CITB levy imposed on employers/contractors is an
admissible business expense or how grants made by the CITB are to
be treated for income purposes are questions that are outside the
scope of CIS. For guidance on these points refer to BIM47605.
