.png)
.png)
The practice of Construction Industry Training Board (CITB) levy deduction will no longer be supported by HMRC, the department has announced.
The CITB is responsible for promoting vocational training in the construction industry. It can impose a charge on employers or contractors to fund its operations.
Many contractors recoup the fee from subcontractors in the form of a deduction made from the “gross amount of payment” shown on monthly returns.
The practice of Construction Industry Training Board (CITB) levy deduction will no longer be supported by HMRC, the department has announced.
The CITB is responsible for promoting vocational training in the construction industry. It can impose a charge on employers or contractors to fund its operations.
Many contractors recoup the fee from subcontractors in the form of a deduction made from the “gross amount of payment” shown on monthly returns.
The Revenue has so far accepted the practice but has now concluded it can no longer be supported because it is not a part of the current or past construction industry scheme (CIS) legislation.
The change will be effective from 6 April and have VAT implications: the value of the subcontractor’s supply for VAT purposes will not be reduced by CITB levy deduction.
Businesses that use CIS payroll software will need to ensure the taxman’s revised stance is reflected in updates, said HMRC.
