CITB and ECITB training levies for construction

Construction and engineering construction employers in the UK must pay a statutory training levy to fund industry-wide skills development. This guide explains your obligations under the CITB levy (for general construction) and the ECITB levy (for engineering construction), including who must pay, current rates, and how to access grant funding to support your workforce training.

Understanding the construction training levies

The Industrial Training Act 1982 authorises two Industry Training Boards to collect levies from employers in their respective sectors:

CITB (Construction Industry Training Board) - covers general construction including building, civil engineering, and specialist trades
ECITB (Engineering Construction Industry Training Board) - covers engineering construction including oil and gas, nuclear, power generation, and process engineering

Both levies are subject to periodic employer consensus votes. If the required threshold of employer support is not reached, the levy cannot be collected. The CITB and ECITB use levy funds to provide grants, apprenticeship support, and training programmes that benefit the entire industry.

Who must pay the CITB levy

You must register with CITB and submit levy returns if your business is wholly or mainly engaged in construction activities in England, Scotland, or Wales. Construction activities include:

Site preparation - demolition, site clearance, earthmoving
Building construction - residential, commercial, and industrial
Civil engineering - roads, bridges, tunnels, railways
Building services installation - electrical, plumbing, heating, ventilation
Building completion - plastering, joinery, painting, glazing, flooring
Plant hire with operator for construction purposes

Not covered by CITB: Architecture and surveying firms (unless undertaking site preparation), building materials manufacturing, mining, and oil and gas (which fall under ECITB instead).

CITB levy rates

The CITB levy is calculated on two elements of your construction workforce costs: directly employed workers (paid through PAYE) and subcontractors paid under the Construction Industry Scheme (CIS).

CITB Levy rates 2026-2029

Construction Industry Training Board levy rates for the 2026-2029 levy period.

The CITB levy is a statutory training levy collected from construction employers in England, Scotland, and Wales under the Industrial Training Act 1982. Levy rates were confirmed through the 2025 consensus process, with 67% of employers voting in favour of the 2026-2029 levy order.

PAYE employees rate: 0.35% of gross PAYE earnings
CIS subcontractors rate: 1.25% of net CIS payments
Levy period: 6 April 2026 to 5 April 2029 (3 years)
Return period: Based on previous tax year (6 April to 5 April)
Assessment issued: Spring following each tax year

What counts as construction activities:

Preparation of sites - demolition, site clearance, earth moving
Construction of buildings - residential, commercial, industrial
Civil engineering - roads, bridges, tunnels, railways
Installation - electrical, plumbing, heating, air conditioning
Building completion - plastering, joinery, painting, glazing
Plant hire with operator for construction purposes

Not construction: Architecture, surveying (unless site preparation), manufacturing building materials, mining, oil and gas (ECITB applies instead).

CITB levy exemption for small employers

Not all construction employers must pay the levy. If your combined wage bill falls below the exemption threshold, you pay nothing - though you must still submit a return to maintain grant eligibility.

CITB Levy exemption threshold

Employers with combined PAYE and net CIS payments under the threshold are exempt from the CITB Levy.

Small construction employers are exempt from paying the CITB levy if their combined wage bill falls below the exemption threshold. However, all employers engaged in construction activities must still submit a levy return.

Exemption threshold: Under £150,000 combined total
Calculation basis: Total PAYE + net CIS payments for tax year
Effective from: 6 April 2026
Return requirement: Still must submit levy return even if exempt
Grant eligibility: Exempt employers can still claim CITB grants

How to calculate your combined total:

Add up all gross PAYE payments to directly employed workers
Add net payments made to CIS subcontractors (after CIS deductions)
If combined total is under £150,000, you pay no levy

Example: If you pay £80,000 in PAYE wages and £50,000 net to CIS subcontractors, your combined total is £130,000 - below threshold, so no levy payable.

When you cross the threshold:

Levy becomes payable from the next assessment period
You move into the 50% reduction band (£150k-£500k) or full levy band
No notification required - CITB calculates from your return
If your business shrinks back below threshold, exemption resumes automatically

Important: Even exempt employers must register with CITB and submit annual levy returns to maintain grant eligibility.

Small employer reduction

Employers with wage bills above the exemption threshold but below the upper threshold receive a 50% reduction on their calculated levy, recognising the proportionally higher burden the levy places on smaller businesses.

CITB Levy small employer reduction

Employers with wage bills between the thresholds receive 50% reduction in levy.

Construction employers with combined wage bills in the small employer band receive a 50% reduction on their calculated levy. This supports smaller construction businesses while still contributing to industry training.

Reduction band: £150,000 to £500,000 combined total
Reduction amount: 50% off calculated levy
Lower threshold: Under £150,000 = fully exempt
Upper threshold: Over £500,000 = full levy
Automatic application: CITB applies reduction from your return data

How the 50% reduction works:

Calculate standard levy (0.35% PAYE + 1.25% net CIS)
If combined total is £150k-£500k, halve the amount
Pay the reduced levy when assessed

Example calculations:

£200,000 wage bill: Standard levy = £700 (PAYE) + CIS element. With 50% reduction = approximately £350-400 depending on PAYE/CIS split
£400,000 wage bill: Standard levy = £1,400 (PAYE) + CIS element. With 50% reduction = approximately £700-800
£500,001 wage bill: No reduction - full levy applies

Note: The reduction applies automatically when CITB processes your levy return. You do not need to apply separately for the small employer reduction.

Levy return deadlines

Submitting your levy return on time is essential - not just to avoid estimated assessments, but to maintain your eligibility for CITB grants. There are two critical deadlines each year.

CITB levy return deadlines

Key deadlines for submitting CITB levy returns and maintaining grant eligibility.

All construction employers must submit a levy return, even if exempt from payment. Missing deadlines affects your ability to claim grants.

Grant eligibility deadline: 30 June - submit by this date to claim grants that year
Final deadline: 30 November - miss this and lose ALL grant eligibility
Levy assessment issued: Spring following the tax year
Returns cover: Previous tax year (6 April to 5 April)
Late return consequence: CITB issues estimated assessment (may be higher than actual)
Appeal deadline: 1 month from service of assessment notice

ECITB levy for engineering construction

If your business operates in the engineering construction sector rather than general construction, the ECITB levy applies instead. Engineering construction covers specialist industries requiring distinct skills and qualifications.

ECITB Levy rates 2026-2028

Engineering Construction Industry Training Board levy rates for engineering construction employers.

The ECITB levy applies to the engineering construction sector - distinct from general construction which falls under CITB. ECITB covers industries including oil and gas, nuclear, power generation, renewables, and process engineering.

The 2025 consensus achieved 85% employer support for the 2026-2028 levy period.

On-site workers rate: 1.2% of gross labour emoluments
Off-site workers rate: 0.33% of gross labour emoluments
On-site exemption: Under £275,000 total payments = no levy
Off-site exemption: Under £1,000,000 annual wage bill = no levy
Levy period: 6 April 2026 to 5 April 2028 (2 years)

Sectors covered by ECITB (not CITB):

Oil and gas - upstream extraction and processing
Nuclear - power generation and decommissioning
Power generation - thermal, renewable, transmission
Renewables - offshore wind, solar farms, energy storage
Chemical and petrochemical - refineries, chemical plants
Process engineering - pharmaceuticals, food processing plants
Water treatment - large-scale infrastructure

Key differences from CITB:

Higher on-site rate (1.2% vs 0.35%) reflects specialist skills
Different exemption thresholds (£275k on-site, £1m off-site)
No CIS-specific rate - applies to all labour emoluments
Separate levy consensus process (higher threshold: 85% support)
Covers plant and equipment fabrication, not just site work

Employers cannot be subject to both CITB and ECITB levies for the same workers. If your activities span both sectors, allocate workers to the appropriate levy based on their primary work.

Determining which levy applies

A business cannot be subject to both CITB and ECITB levies for the same workers. If your activities span both sectors, you must allocate workers based on their primary work:

Building a warehouse: CITB levy applies
Installing process equipment in a chemical plant: ECITB levy applies
Constructing an offshore wind farm substation: ECITB levy applies
Building site access roads: CITB levy applies (unless integral to engineering project)

If you are genuinely unsure which levy applies, contact both CITB and ECITB for guidance. Registering with the wrong board can result in having to pay arrears to the correct board.

The dual levy burden with Apprenticeship Levy

Large construction and engineering construction employers may face a significant dual levy burden. The Apprenticeship Levy is a separate obligation with no offset against CITB or ECITB levies.

Apprenticeship Levy and CITB/ECITB interaction

Large construction employers may pay both Apprenticeship Levy and CITB/ECITB levies.

Large construction and engineering construction employers face a dual levy burden - they may be required to pay both the Apprenticeship Levy and their sector-specific training levy (CITB or ECITB). There is no offset between these levies.

Apprenticeship Levy threshold: £3 million annual pay bill
Apprenticeship Levy rate: 0.5% of pay bill (minus £15,000 allowance)
CITB Levy threshold: £150,000 combined PAYE and net CIS
ECITB on-site threshold: £275,000 total payments
Offset available: No - levies are paid independently

How both levies apply:

Apprenticeship Levy: 0.5% on total pay bill over £3m (all employers)
CITB Levy: 0.35% PAYE + 1.25% net CIS (construction only)
ECITB Levy: 1.2% on-site / 0.33% off-site (engineering construction only)
No deduction, credit, or offset between the levies

Example: Large construction employer

Annual pay bill: £5 million
PAYE construction wages: £3 million
Net CIS payments: £1.5 million

Levy calculations:

Apprenticeship Levy: (£5m x 0.5%) - £15,000 = £10,000
CITB Levy: (£3m x 0.35%) + (£1.5m x 1.25%) = £10,500 + £18,750 = £29,250
Total levy burden: £39,250

Using Apprenticeship Levy funds:

Levy funds appear in your digital apprenticeship service account
Can be used for approved apprenticeship training (any sector, not just construction)
Cannot be used for CITB/ECITB training courses directly
CITB grants are separate - apply via CITB for construction-specific training
Unused Apprenticeship Levy funds expire after 24 months
Government adds 10% top-up to levy funds (England only)

Planning tip: Use Apprenticeship Levy funds for apprenticeship programmes and CITB grants for short courses, upskilling, and non-apprenticeship training to maximise return on both levies.

Claiming CITB grants and funding

The primary benefit of being levy-compliant is access to substantial grant funding for training. CITB offers grants covering apprenticeships, short courses, qualifications, and specialist training.

CITB apprenticeship grants

Grant funding available to construction employers for apprentice training.

Construction employers who are levy-compliant can claim grants for apprentice training. Grants are available for apprenticeships at Levels 2-7.

Annual attendance allowance: £2,500 per year
Completion payment: £3,500 (one-off on successful completion)
Typical total per apprentice: Up to £6,000+ over apprenticeship duration
Travel costs: CITB pays costs above first £30 for block release
Accommodation: 80% covered via CITB approved service
Eligibility: Levy returns must be up to date (even if exempt from payment)

Other CITB grants available

Beyond apprenticeship funding, levy-compliant employers can claim grants for:

Short courses - typically £30-120 per person per day for approved training
Skills and Training Fund - for employers with fewer than 250 direct employees
Plant operator training - covering CPCS, NPORS, and other plant qualifications
Supervisor and management training - SMSTS, SSSTS, and leadership courses
Specialist certifications - scaffolding (CISRS), temporary works, demolition

Grant rates and eligible courses are updated regularly. Check the CITB website for current rates and approved training providers.

ECITB grants and skills support

ECITB provides similar grant support for engineering construction employers, including:

Apprenticeship grants and attendance payments
Technician training programmes
Engineering qualifications at all levels
Health and safety training specific to engineering environments
Management and supervisory development

ECITB grant rates differ from CITB and reflect the specialist nature of engineering construction training.

Maximising your return on levy investment

To get the most value from your levy payments:

Submit returns early - meet the 30 June deadline to access grants immediately
Claim all eligible training - many employers under-claim by not submitting grant applications
Plan training annually - align workforce development with levy assessment timing
Use both funding streams - Apprenticeship Levy for apprenticeships, CITB/ECITB grants for short courses
Check eligible courses - some non-construction courses may qualify if construction-related
Keep training records - grants require evidence of completed training

Registering with CITB or ECITB

If you have not previously registered, you should do so as soon as you begin construction or engineering construction activities. Late registration may result in backdated levy assessments.

CITB registration

Register online at citb.co.uk or by calling their registration helpline
You will need: company details, construction activities breakdown, estimated wage bill
Registration is free and does not commit you to levy payment if exempt

ECITB registration

Register online at ecitb.org.uk or contact the levy team
You will need: company details, engineering construction activities, site locations
ECITB will confirm whether your activities fall within scope

Appealing a levy assessment

If you believe your levy assessment is incorrect, you can appeal within one month of receiving the assessment notice. Common grounds for appeal include:

Incorrect classification of activities (should be ECITB not CITB, or vice versa)
Errors in wage bill calculation
Business no longer engaged in construction activities
Estimated assessment significantly overstates actual liability

Appeals are heard by an Industrial Tribunal. It is advisable to submit evidence supporting your position, such as payroll records, contracts, and activity descriptions.

Business Context Testing

Content Graph

Guvnor

CITB and ECITB training levies for construction

Understanding the construction training levies

Who must pay the CITB levy

CITB levy rates

CITB levy exemption for small employers

Small employer reduction

Levy return deadlines

ECITB levy for engineering construction

Determining which levy applies

The dual levy burden with Apprenticeship Levy

Claiming CITB grants and funding

Other CITB grants available

ECITB grants and skills support

Maximising your return on levy investment

Registering with CITB or ECITB

CITB registration

ECITB registration

Appealing a levy assessment

Compliance Assistant

🧪 Business Context Testing

◉ Content Graph

Understanding the construction training levies

Who must pay the CITB levy

CITB levy rates

CITB levy exemption for small employers

Small employer reduction

Levy return deadlines

ECITB levy for engineering construction

Determining which levy applies

The dual levy burden with Apprenticeship Levy

Claiming CITB grants and funding

Other CITB grants available

ECITB grants and skills support

Maximising your return on levy investment

Registering with CITB or ECITB

CITB registration

ECITB registration

Appealing a levy assessment

Related guides in Employment Contracts

Construction tax compliance - how CIS, VAT, CITB, and PAYE work together

Business Context Testing

Content Graph