The CITB is planning to simplify the whole levy system to make it easier to use and cheaper to comply with.

Analysis by the board showed the proposed changes will result in 56% of employers continuing to pay the same amount, 28% seeing a reduction in their levy and 16% potentially seeing an increase.

The simplified levy process has been drawn-up in consultation with the employers and will be introduced in 2017.

The new scheme:

Maintains PAYE Levy at 0.5%

Brings to an end the raising of  Levy on payments to Labour-only subcontractors

Introduces a Levy on payments made to Net (taxed) CIS sub-contractors,  using figures already provided by employers to HMRC

Increases the size of the small business levy reduction from £100,000 to £300,000

Removes the Labour-Only Payments Received offset mechanism

All registered employers will receive a letter next week detailing the changes.

Douglas Matthew, Head of Levy and Grant for CITB said: “The changes have come in response to feedback from employers.

“They told us that the current process is complicated, time-consuming and can lead to extra administration costs.

“More than 22,000 employers currently pay the levy so it is important that we have the right system in place.

“Using figures provided by employers on their 2014 Levy Returns, we believe that under the new arrangements 84% of employers are likely to pay the same or less levy.

“Where companies face an increase in their payments, we will work closely with them to help them through the transition.”

For full details of the proposed changes click here