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Changes to Construction Industry Training Board levy deductions

From 6 April 2014,  HMRC will no longer allow contractors who incur a Construction Industry Training Board (CITB) levy to pass on this cost to their sub-contractors in the form of a deduction made from the ‘Gross amount of payment’ shown on a contractors monthly return.

This change in practice follows a review by HMRC which concluded that the practice cannot be supported because it does not comply with current or past Construction Industry Scheme (CIS) legislation.

The change also has VAT implications as the value of the sub-contractor’s supply for VAT purposes will no longer be reduced by CITB levy deductions.

More details are available from HMRC at


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