Annual Levy Return Guidance Notes 2014 A step by step guide to completing your Annual Return Form
www.citbni.org.uk
Important Notice to Levy Payers Levy CITB NI is a statutory training board with the purpose of encouraging the adequate training of persons employed in or intending to be employed in the construction industry in Northern Ireland. Consequently CITB NI provides a range of services including advice and guidance on training and grants to support the construction industry in Northern Ireland. Industry continues to support CITB NI with a recent Employer Tracking Survey concluding that 66% of employers think the Levy/Grant system is important for maintaining the level and quality of training within the industry as a whole and 74% of employers believe the Levy/Grant system should continue. As it is considered that your business activity or a portion of your business activity is within scope as defined by Schedule 1 of the Industrial Training Board Order 1964, CITB NI need to determine if you will be required to pay a training levy and, if so, the amount. The legislation requires you to complete the Annual Return Form to enable CITB NI to calculate your levy and as a result you are respectfully asked to submit the completed form to CITB NI not later than 4.00pm on 29 August 2014. For the fiftieth levy period, (1 September 2014 to 31 August 2015) the levy will be 0.65% of the total of all emoluments paid by you for construction work in Northern Ireland to employees and self employed labour only subcontractors who are not themselves levy payers. The levy threshold for the training year 1 September 2014 to 31 August 2015 will remain at 80,000. Please note that if you fail to complete the Annual Return Form, CITB NI has the right to estimate your emoluments for the relevant tax year. CITB NI also has the right to inspect emoluments for up to 5 years or from the date of registration, whichever is the greater. Please keep copies of cumulative gross pay per month together with HM Revenue & Customs CIS Scheme monthly returns. CITB NI is required by law to examine these. You are asked to note that for the purposes of interpretation the term business is deemed to include Limited Companies, Partnerships, Limited Liability Partnerships, Sole Traders or any other persons involved in any commercial enterprise or activity within construction as defined in the Industrial Training (NI) Order 1984. 1
Definitions Emoluments are gross wages paid in the relevant tax year to Pay As You Earn (PAYE) and subcontractors. Working Directors are directors who take an active part in and are involved in day to day decision making in the running of the business. Supply & Fit Contractors CITB NI determine a supply and fit contractor to be a contractor who supplies materials representing 10% or more of the value of the contract. Please note if this is the case you should not include any of the payment ie materials or labour, in your calculations when completing your Annual Return form. Main Activity is the activity which you would spend most time involved in. Secondary Activity is an activity which you would be involved in frequently but would not take up the majority of your time. Construction Establishment is a business which provides construction activity and operates in Northern Ireland for a period of 27 or more weeks in the tax year ended April 2014. Levy Threshold is the amount of gross emoluments paid to PAYE and labour only subcontractors within the relevant tax year beyond which you are liable for payment of levy. Interest Charge To facilitate the timely recovery of levy for the purpose of investment in training, interest will be charged on all overdue levy raised in the forthcoming training year (Levy Period 50). With effect from 1 October 2014, interest at a rate of 8% gross per annum will be calculated from the date upon which accounts become overdue (30 days after levy assessment has been raised) up to the date of payment. Barry Neilson Chief Executive CITB NI Nutts Corner Training Centre 17 Dundrod Road, Crumlin, Co Antrim BT29 4SR Tel: 028 9082 5466 www.citbni.org.uk 2
Points to Remember when Completing the Annual Return Form Annual Return Forms must be completed and returned before 4.00pm on 29 August 2014 Taking the option will not be accepted after 4.00pm on 29 August 2014 under any circumstances Annual Return Forms can be completed online at www.citbni.org.uk on or before 29 August 2014 Username and Password for online Returns can be found on the front of the 2014 Annual Return Form or you can contact CITB NI for these details If your company trading name has changed please make sure you amend the details on the Annual Return Form Emoluments to be included should be the Gross emoluments to PAYE and Labour Only Subcontractors relating to work undertaken in Northern Ireland Exclude payments made to PAYE and Labour Only Subcontractors relating to work carried out outside Northern Ireland Include payments to labour only subcontractors unless they are themselves levy payers and included in the 2014 Registered List of Levy Payers A supply and fit contract is when the materials total more than 10% of the value of the contract Exclude payments made to supply and fit contractors Complete Part 5 or Part 7 of the form not both You cannot pay your Levy by direct debit if you have taken the Current Year Option (Part 5) You cannot pay your Levy by direct debit if you have not completed your Annual Return Form Please assist CITB NI by completing your email address as we plan to communicate more with employers electronically. Levy Payers Certificates are only issued upon request and must be requested well in advance of when they are needed. Please allow a minimum of 5 working days for issue of the certificates following your request. Please note Grant will only be paid to employers who submit an actual completed Annual Return Form. Grants will be held until 28 August 2015 to allow actual emoluments to be returned. Grant will be declined after this date if not returned. (See full Terms & Conditions of Grant 2014/15) 3
Guidance on Completion of 2014 Annual Return Form Note 1 Your Details Please complete in the right hand column any changes to your previous details. These details are all deemed essential and we would request you to complete all contact details including contact telephone numbers and email addresses. CITB NI would encourage you to provide at least one contact email address to enable us to increase communication by means of email. Please advise how you prefer to be contacted by ticking the appropriate boxes in Part 1. Note 2 Construction Establishment and Establishment Details To ensure that a fair and reasonable system is applied to all employers working in construction, levy will only be collected from the construction activity of an employer who carries out multiple activities both construction and non construction related. The conditions are: An employer who owns two or more construction establishments may elect to have all establishments assessed as if they were a single establishment. We require you to identify on your Annual Return Form all establishments construction related and non construction related. If employee skills are transferable between construction activities and non construction activities, levy must be paid on the total emoluments. If construction activities which are not specified within our legislation are part of your establishment, CITB NI will undertake an assessment through an audit process to determine the main activity of the business. If the majority of your activities fall within our empowering legislation levy will be collected on the total emoluments. You must advise us in writing if you wish to receive a joint assessment notice in respect of each construction establishment. Note 3 Main Activity of a Business CITB NI is required by law to collect levy from employers who are engaged in an activity within the construction industry in Northern Ireland. Note 4 Member of an Employer Organisation We consult regularly with employers organisations on key issues affecting the needs of the industry. It is therefore important that you tell us of all the employers organisations that you belong to. This enables us to ensure that those we consult with represent the majority of our registered employers to measure support for future proposals. Be assured we do not pass financial information you give us to any external organisations (except where legally required). 4
Note 5 Current Year Option Please complete Part 5 if you wish us to calculate your levy using emoluments for the current tax year ie the tax year commencing 6 April 2014. Once an election has been made it cannot be withdrawn or amended. Employers who elect to have their levy calculated on this basis will be issued Option Forms in October 2014 and April 2015 which must be returned detailing emoluments for the periods 6 April 2014 to 5 October 2014 and 6 October 2014 to 5 April 2015. The Board will issue notices of assessment for each of these periods. It is not possible to pay your levy by Direct Debit if you elect to take the Option. NB: If you elect for the Option, your completed Annual Return Form must be received by CITB NI no later than 4.00pm on 29 August 2014. CITB NI will accept online, faxed or emailed copy on or before 4.00pm on 29 August 2014. We will not be held responsible for Option applications which have not been received prior to the deadline stated. Applications received after 4.00pm on 29 August 2014 will be refused without exception. No excuses will be accepted for late options or options not received prior to the deadline. Please ensure if you post your form that you have allowed sufficient time for it to be received. CITB NI would advise anyone wishing to avail of the option to ring on 028 9082 5466 to ensure its receipt before 4.00pm on 29 August 2014. Note 6 Number of Employees on PAYE Please write in Part 6 the number of employees directly employed during the tax year ended 5 April 2014. Note 7 Payments (i) Emoluments to be included - PAYE You must include the total GROSS emoluments (before deductions) made to all employees (including working directors, administrative, technical and clerical staff as well as operatives) which are taxed under Schedule E. Do not include emoluments relating to pensions, catering staff, or payments to employees which relate to work outside Northern Ireland. Also see Note 2 for information on establishments. Following the introduction of Real Time Information (RTI) by HMRC, the year end forms P35 and P14 will no longer exist. Instead, employers will send a document called a Full Payment Summary (FPS) every time they pay their employees throughout the year. These documents will contain PAYE information required on the Annual 5
Return Form. It is therefore essential to retain a copy of each of these. Computerised Payroll If your payroll is computerised and has the facility to produce an end of year report that shows Gross Taxable Pay in this employment, please produce it. This is not required for HMRC End of Year returns, but will easily provide the gross payroll figure needed for the Annual Return Form. Ensure the report includes amounts for leavers during the year, not just staff employed at the end of the tax year. (ii) Emoluments to be included labour only subcontractors You must include the total GROSS emoluments (before deductions) made to labour only subcontractors, under labour only agreements plus any emoluments made to employment agencies for labour. Do not include VAT. If you employ labour only subcontractors who are not levy payers, you are liable to pay levy on all emoluments made to them. Also see Note 2 for information on establishments. You are advised to keep records of all payments included in this calculation as we are required by law to examine them. (iii) To be excluded: Emoluments to labour only subcontractors who are themselves levy payers. The CITB NI Registered List of Levy Payers contains all levy payers registered in Northern Ireland. Please refer to this list when making your calculations. Employers registered after the date of the publication may apply for a Levy Payers Certificate. If you have excluded employers who have produced a certificate we advise that you keep a copy for your records. Emoluments relating to subcontractors for work conducted outside Northern Ireland. Emoluments relating to administration or support staff working in Northern Ireland who only support activities outside Northern Ireland. You are advised to keep records of all payments included in this calculation as we are required by law to examine them. Pensions or emoluments relating to any catering staff. Employers National Insurance Contributions. See Note 2 for information on establishments. 6
Note 8 Accountant Details Please complete this section with details of your accountant. Note 9 Direct Debit Payments CITB NI is aware of the current hardships of the construction industry and would encourage levy payers to pay their levy assessment by Direct Debit for which there is no additional charge. This process allows levy payers to pay the levy in 10 equal monthly instalments (October - July inclusive). Please tick this section and refer to Page 10 for further details. Although we encourage levy payers to commence paying by Direct Debit in October, we will accept this request any time between October and July provided you have supplied actual emoluments. Payment by Direct Debit can only be made if you have provided CITB NI with actual emoluments for the current year. Direct Debit payments must be applied for and a mandate completed annually. Please note that if you are audited during the year and the amount of levy due changes, you will receive a revised schedule of payments prior to CITB NI collecting the next instalment of levy. Additional levy for prior years cannot be collected by Direct Debit. Maximise your Grant Return increase your grant payment by 2.5% when you claim your grant online increase your grant payment by 1.5% when you pay your levy electronically ie by Direct Debit or BACS*. increase your grant payment by 1.5% when you complete your Annual Return Form online by 4.00pm on 29 August 2014. You can benefit from a total uplift on your grant of 5.5% if you do all three of the above. This additional grant support will be processed automatically on receipt of each online grant claim when the above criteria have been met. All other conditions of grant apply. Note 10 Registration If you believe that someone should be on the list of Registered Levy Payers and is not, please provide full names and addresses in this section. Please remember, CITB NI can only register someone who is an employer, in the construction industry in Northern Ireland and levy only applies to those who pay out more than 80,000 per year in emoluments for work in Northern Ireland. You should not exclude a labour only subcontractor from your Annual Return Form to CITB NI unless you are certain they are a levy payer. If you are in any doubt you should contact CITB NI. * payment to be made within 30 days from date of invoice 7
Note 11 Declaration Please ensure that all information supplied on this form is correct to the best of your knowledge and signed by someone in authority within your establishment. Queries If you have any difficulty completing this form, please contact us on (028) 9082 5466 or email lesley.longstaff@citbni.org.uk CITB NI Website CITB NI s website has the facility to allow employers to file their Annual Return Form online and we would encourage all employers to use this facility. Your username and password are on the front cover of the 2014 Annual Return Form for your convenience. Grants can also be submitted online. Please visit our website at www.citbni.org.uk 8
Levy on Emoluments to Labour Only Subcontractors? Employers must pay a levy on payments to labour only subcontractors as well as on direct employees. The employer must include in the Annual Return Form the total of all emoluments made for labour only services in the last tax year. This includes emoluments to all firms and individuals, who are not registered with CITB NI. CITB NI s annual list of registered levy payers gives the names of all active levy payers. Employers should declare gross emoluments before any deductions (other than pensions) for example, insurance or tax. Employers should not include VAT on the payments. Under the Industrial Training (Northern Ireland) Order 1984 CITB NI levies employers in the construction industry. The Order does not give authorisation to employers to levy or make deductions from any amounts paid to a labour only subcontractor or other worker. However, Part IV of the Employment Rights (NI) Order 1966 enables an employer to make a deduction from emoluments of a worker employed by him when: The deduction is authorised under the worker s contract, Or The worker has previously signed in writing his agreement or consent to the making of the deduction. There have been a number of cases before industrial tribunals about employer deductions of CITB levy. The tribunals have made it clear that the deductions are legal only if the worker has agreed beforehand. The condition shown above of the Employment Rights (NI) Order applies to deductions made from labour only subcontractors as well as employees on PAYE. You may want to get legal advice about your own circumstances. 9
Pay your Levy the easy way and sign up for CITB NI s Direct Debit Scheme CITB NI is offering all employers the opportunity to pay their levy in 10 monthly Direct Debit instalments (October - July inclusive) at no extra cost. We would encourage employers to sign up to direct debit in order to ease the burden of paying levy in the alternative two instalment method. A grant enhancement is available to employers who claim grant online and sign up to pay levy by direct debit. Please refer to the terms and condition of grant for full details. All you need to qualify for Direct Debit is to: Return your 2014 CITB NI Annual Return Form before 4.00pm on 29 August 2014 and send it to the Levy Team, CITB NI, Nutts Corner Training Centre, 17 Dundrod Road, Crumlin, Co Antrim, BT29 4SR. Complete the Direct Debit Mandate which is enclosed with the Annual Return Form and return it to the Levy Team, CITB NI, Nutts Corner Training Centre, 17 Dundrod Road, Crumlin, Co Antrim, BT29 4SR. Even if you have previously signed up to pay by Direct Debit please complete and return a new mandate. CITB NI makes no charge for the direct debit service and you will receive notice of how much is payable before any monies are collected from your bank. After you have agreed to pay by Direct Debit instalment, we will do the rest for you. Your levy will be calculated in October 2014 and will be debited from your account in 10 equal instalments commencing in October 2014. CITB NI can only calculate levy based on the information provided on the Annual Return Form. Direct Debit Mandates must be completed annually as CITB NI can only apply the direct debit scheme to employers who have provided actual figures on their 2014 Annual Return Form. CITB NI can only collect levy by direct debit for the current training year. If you have previously paid by direct debit and have had a recent adjustment to your account for prior years incurring additional levy, this amount cannot be collected by the current direct debit scheme and payment should be made by cheque/ BACS or debit or credit card. 10
Maximise your Grant Return increase your grant payment by 2.5% when you claim your grant online increase your grant payment by 1.5% when you pay your levy electronically ie by Direct Debit or BACS*. increase your grant payment by 1.5% when you complete your Annual Return Form online by 4.00pm on 29 August 2014 You can benefit from a total uplift on your grant of 5.5% if you do all three of the above. This additional grant support will be processed automatically on payment of relevant grant claims when the above criteria have been met. All other conditions of grant apply. You cannot pay by direct debit if you have elected to base your levy on the 2014/15 tax year ie the Option. * payment to be made within 30 days from date of invoice 11
Answers to Our Frequently Asked Questions Q1 A Q2 A Q3 A Q4 A Why am I registered with CITB NI? You are required to register if you are an employer who is involved in a construction activity in Northern Ireland and working for 27 or more weeks in the tax year. How do I de-register with CITB NI? You cannot de-register with CITB NI unless you cease trading or you cease all construction activity, as defined within the scope of legislation, within your business. If your activities change, please notify us in writing immediately. I have received an Annual Return Form, how do I complete it? Please use these guidance notes provided with the form which will explain what is required. You can, if you wish, fill your 2014 Annual Return Form in online at www.citbni.org.uk before 4.00pm on 29 August 2014. Alternatively, please contact us and we can talk you through it. What figures do you require on my Annual Return Form? You must give the gross amount paid to all PAYE employees including working directors and Q5 A Q6 A any bonuses paid. You must also give us the gross figures for labour only subcontractors who are not themselves levy payers. Emoluments for work outside Northern Ireland should not be included. Also emoluments for administration and support staff supporting activities outside Northern Ireland should not be included. If work is undertaken both in and outside Northern Ireland, emoluments should be apportioned between these areas. How and when is levy calculated & invoiced? Your emoluments for the tax year are multiplied by the appropriate levy rate. Invoices are raised in two instalments October & February, unless you have elected to pay by Direct Debit, or if the Option is taken you will be invoiced in October & April. What is a construction establishment? It is a construction activity which is operating in Northern Ireland for a period of 27 or more weeks in the relevant tax year. 12
Q7 A Q8 A What does construction establishment mean to my business? If applied we will only collect a levy on the construction activities of your business if they are above the levy threshold. What is the Option? The Option is when levy is calculated on the current tax year figures ie April 2014/15. You would only take the Option if your emoluments were going to be less in the current tax year than in the previous year or if it is your first year of trade and you wish to avail of grants. The deadline for receiving Option requests is 4.00pm on 29 August 2014, unless it is your first year of trade. This deadline is strictly adhered to. Late Option requests will be refused without exception. Q9 A What are the benefits of being registered with CITB NI? As a registered in scope employer you can claim grant for training and qualification achievement in many disciplines that will improve the performance of your business. In addition to the financial benefit that CITB NI grant scheme provides, you also receive benefits from services including training and careers advice. The Mobile Training Unit (MTU), which can deliver a range of health and safety training on site, is free of charge to registered in scope employers. Identification of training providers and their courses is also available through the online training directory at: www.citbni.org.uk Q10 Can I pay by instalments? A Yes. You can elect to pay by direct debit in 10 equal monthly instalments commencing in October and ending in July if you have provided actual figures. You must notify CITB NI if you wish to pay by direct debit by completing Part 9 of the Annual Return Form and completing a Direct Debit Mandate annually. 13
Q11 Why is the person I am working for deducting levy from my pay? A CITB NI is the only body authorised to collect levy but it is a matter between you and your employer what arrangement you have agreed on. It is unlawful for anyone to make a deduction from your emoluments without your consent. See also section Levy on Emoluments to Subcontractors for further information. Q12 Can I get a Levy Payer Certificate to show the main contractor that I am paying levy directly to CITB NI? A A Levy Payer Certificate can be issued to any levy payer upon request. Please allow a minimum of 5 working days for receipt. Q13 Do I include VAT? A No. VAT should not be included. Q14 What methods of payment do you offer? A Electronic (ie BACs) Sort Code: 95-02-02 A/C No: 10 12 52 37 A/C Name: Construction Industry Training Board (Please quote your CITB NI registration number if paying electronically) CITB NI will not be responsible for any costs associated with online payments. Direct Debit Figures must be actual and payments are taken over 10 months (October - July inclusive) Cheque Made payable to CITB and paid within 30 days from date of invoice. Debit/Credit Card Call 028 9082 5466 with card details within 30 days from date of invoice. Q15 What facilities are available online? A We are continually updating our website depending on the requirements of the industry and will introduce additional items as and when available. We pay grant directly into the employer s bank via BACs for those employers who have requested this method of payment. You can currently do the following online: Complete your Annual Return Form and submit it before 4.00pm on 29 August 2014. Complete grant applications online. Check the Training Directory online. Check latest news and events online. 14
Maximise your Grant Return increase your grant payment by 2.5% when you claim your grant online increase your grant payment by 1.5% when you pay your levy electronically ie by Direct Debit or BACS* increase your grant payment by 1.5% when you complete your Annual Return online by 4.00pm on 29 August 2014. You can benefit from a total uplift on your grant of 5.5% if you do all three of the above. For further information contact: CITB NI, Nutts Corner Training Centre, 17 Dundrod Road, Crumlin BT29 4SR Tel: 028 9082 5466 Fax: 028 9082 5693 Email: lesley.longstaff@citbni.org.uk This additional grant support will be processed automatically on payment of relevant grant claims when the above criteria have been met. All other conditions of grant apply. Q16 Can I fill the Option Forms in Online? A Yes. You can complete the 2014 Annual Return Form and elect to have your levy based on the 2014/15 tax year online however, there is no current facility to complete the first or second option forms online. These forms will be posted to you in October and April and should be completed within 30 days and returned to CITB NI. * payment to be made within 30 days from date of invoice 15
FREE Construction Employer Events during 2014/2015 For more information on the 2014/2015 Grant Scheme and to find out about all of CITB NI s products and services, come along to one of the FREE Construction Employer Events, as listed below: Town Date Venue Lisburn 25 Sept 2014 Lisburn Enterprise Centre, Enterprise Crescent Enniskillen 26 Feb 2015 Fermanagh Enterprise Centre, Tempo Road Craigavon 19 Mar 2015 CIDO Innovation Centre, Charlestown Road Omagh 23 April 2015 Omagh Enterprise Centre, Great Northern Road Newry 19 May 2015 Mourne Country Hotel, Belfast Road Derry/Londonderry 18 June 2015 Waterfoot Hotel, Caw Roundabout, Clooney Road These events are short, informal and have been designed to help you the construction employer, get what you re entitled to. All events will commence at 10.00am with registration, tea/coffee and a light breakfast and will conclude at 11.30am. Event Programme Grants - what is available to you and how to claim Levy - how the money is spent and how it is returned to you Training courses and information on the facilities at Nutts Corner Training Centre Mobile Training Unit (MTU) latest information on courses available and how to book Other available funding opportunities or initiatives available to Northern Ireland construction employers Register now by email: events@citbni.org.uk or telephone 028 9082 5466 Health and Safety Works NI (HSWNI) is holding a series of four workshops which will explain how to prepare a method statement and a construction health and safety plan. The workshops are aimed at owners or safety officers of small construction companies and will make use of templates and worked examples providing delegates with an opportunity to write a method statement themselves: 16 Town Date Venue FREE Construction Heath & Safety Workshops for building contractors Armagh 16 Oct 2014 Armagh Business Centre, Loughgall Road Newtownards 6 Nov 2014 Ards Business Centre, Jubilee Road Coleraine 20 Nov 2014 Causeway Enterprise Agency, Loughanhill Ind. Estate Belfast 14 Jan 2015 Ormeau Business Park, Cromac Avenue Crumlin 24 Mar 2015 CITB NI, Nutts Corner Training Centre, Dundrod Road, Crumlin All events will commence at 10.00am with registration, tea/coffee and refreshments and will conclude at 12.30pm. For more information about these workshops and to register, please go to HSWNI s website: www.healthandsafetyworksni.gov.uk/events
www.citbni.org.uk
For further information contact: CITB NI Nutts Corner Training Centre 17 Dundrod Road Crumlin BT29 4SR Tel: 028 9082 5466 Fax: 028 9082 5693 Email: lesley.longstaff@citbni.org.uk www.citbni.org.uk CITB, CIC and CITB NI are working as ConstructionSkills, the Sector Skills Council for Construction