The UK Construction Industry Training Board (CITB) have been exploring ways to simplify the levy system to make it easier for all employers, which include IPAF member companies in the UK, to complete their levy returns.
Following research and feedback from UK employers it is reported that the levy basis needs to be made simpler and the levy return easier and quicker to complete with no additional record keeping, a small group of industry representatives, the Levy Working Party (LWP), has worked on options and recommended a simplified system.
The CITB has consulted widely with industry over the past few months on the levy simplification proposal. All employers will shortly receive their 2014 Levy Return for completion. Within the mailing pack is a survey asking employers to comment on the current system and the proposal.
Objectives of Levy Simplification
To develop the Levy Simplification proposal the LWP has applied some strict objectives:
- The outcome should be a simpler system
- CITB should maintain current Levy income levels – not increase them
- The majority of employers should end up paying roughly the same amount of Levy as they currently do
- The existing PAYE Levy rate (of 0.5%) should be maintained
- The final proposal must be endorsed by industry
- The final proposal must be legally sound
- The research, consultation and development are not bound by a deadline: the priority is getting it right first time