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bigduckontax, Accountant
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Hi, I have a labour only sub-contracting company, and the "employ

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Hi, I have a labour only sub-contracting company, and the "employer" i worked for between 2002 and 2009 took "CITB Levy" @ 1.5% for this whole period. Can I claim it back?
Many thanks,
Martin
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello Martin, I am Keith and have had a look at CITB.

These deductions are under the Industrial Training Act, 1982. The Construction Industry Training Board may impose levies on employers and contractors in the industry to support its activities. Have a look at the web site BIM47605, third paragraph. It is an allowable expense against Income Tax.

From what I can see the deductions are permissible. Here is HMRC advice on the matter from their release
CISR15110:

'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.'

You may have to amend your monthly returns. You will have to contact your tax office to correct your returns if you have not adjusted your 'Gross amount of payment' over the years.

I do hope I have thrown some light on these deductions for you.
Customer: replied 3 years ago.

I dont think you understood my question or the "levy" side of things

Expert:  bigduckontax replied 3 years ago.
Your question referred to your employer deducting the CITB Levy from you payments to you as a subcontractor. He was perfectly entitled so to do and these are allowable against your fees and should be deducted before you make your annual self assessment return to HMRC. The resultant slightly lower figure is called the Gross Amount of Payment.
Customer: replied 3 years ago.

On the CITB web site it states that the only body in the UK legally allowed to take the levy from employers is itself! It also states that Labour only sub-contractors (me) should not be liable.


Both my accountants and me are of the belief that the "levy" taken from me is not legal, and my question is can I claim it back to 2002?


This issuse has nothing to do with TAX or tax relief.


In 2010, I recieved a letter from the company I was sub contracting to, stating that they had "taken in error" citb levy and enclosed a cheque for moneys taken during 2009 and 2010.


SO, my question is,,,, can I claim back the levy taken before then back to 2002?

Expert:  bigduckontax replied 3 years ago.

The answer is no. Please look at CISR15110, the HMRC web site on the subject which makes it perfectly clear that these deductions can be made from subcontractors. In any event 2002 is beyond the Limitation Period of 6 years so you would be on a hiding to nothing trying to reclaim the moneys, sorry.

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