{"id":535740,"date":"2026-01-12T12:45:50","date_gmt":"2026-01-12T12:45:50","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=535740"},"modified":"2026-01-22T14:24:48","modified_gmt":"2026-01-22T14:24:48","slug":"contractor-loses-22k-appeal-over-failing-citb-levy-system","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/legal\/contractor-loses-22k-appeal-over-failing-citb-levy-system-12-01-2026\/","title":{"rendered":"Contractor loses \u00a322k appeal over \u2018failing\u2019 CITB levy system"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A contractor has been ordered to pay almost \u00a322,000 after it lost its appeal against paying the Construction Industry Training Board\u2019s (CITB) levy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Surrey-based MJL Construction Associates took<\/span><a href=\"https:\/\/www.constructionnews.co.uk\/skills\/citb-cuts-threaten-vital-management-training-09-12-2025\/\"> <span style=\"font-weight: 400;\">the CITB<\/span><\/a><span style=\"font-weight: 400;\"> to an employment tribunal in Bury St Edmunds last November to dispute paying levies due for 2021 and 2022.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to a judgment in the case, published last week, MJL director Leslie Blay had argued against paying the fee on the grounds that there was \u201ca lack of face-to-face apprenticeship training courses\u201d, while questioning \u201cthe standard of them, the distance to the nearest one and a perceived lack of support\u201d.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He also disputed whether he had been assessed correctly, as he felt the subcontractors he used, who were also registered with the CITB, should be responsible in their own right for paying it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Blay accepted his only legitimate reason for appeal was the CITB\u2019s assessment of his firm, but he told the tribunal that \u201che wanted to complain about the system\u201d and believed it was failing.<\/span><\/p>\n<p>All CITB registered companies are <a href=\"https:\/\/www.constructionnews.co.uk\/skills\/employers-back-plan-to-continue-citb-levy-20-05-2025\/\">levy assessed<\/a> on their wages bill and the CIS subcontractors they make CIS deductions from.<\/p>\n<p>However, those with a bill between \u00a3150k to \u00a3499,999 are eligible for a 50 per cent levy reduction and those with a wage bill of less than \u00a3150k are exempt.<\/p>\n<p><span style=\"font-weight: 400;\">Blay told the tribunal that his company should not be paying a levy in respect of \u201cbona fide subcontractors\u201d and said they \u201cshould be paying it themselves as they were employers employing their own employees\u201d. He urged the CITB to recoup the fees from them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Blay also claimed that knowledge of the levy was \u201cpatchy\u201d and told the tribunal companies that should be paying were not doing so, which was leading to other firms paying more.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The CITB\u2019s representative admitted there was \u201cno obligation\u201d on construction employers to declare their eligibility, but said it did have 74,000 firms registered<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The training body said it was carrying out research to identify which companies met the criteria and should be registered.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt was clear from the legislation that the appellant was obliged to pay the levy in respect of net-paid bona fide contractors,\u201d Judge Samantha Moore said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIn that respect it was not a question of the appellant paying the levy on behalf of those contractors because in many cases they should also be paying a levy themselves.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moore understood Blay&#8217;s complaints about the unfairness of the system, but said \u201cthis is not an argument that can have any traction in this jurisdiction\u201d.<\/span><\/p>\n<p>The judge ruled that MJL had been correctly assessed and ordered it to pay \u00a321,913.27.<\/p>\n<p>Commenting on the case, a CITB spokesperson said: &#8220;MJL Construction Associates Ltd exercised its statutory right to appeal against the 2021 and 2022 levy assessments.<\/p>\n<p>&#8220;It did so on the grounds that [\u2026] subcontractors who are registered with CITB in their own right should be responsible for paying the levy on the work being undertaken for MJL Construction Associates Ltd, and not MJL. <br aria-hidden=\"true\" \/><br aria-hidden=\"true\" \/>&#8220;This is not the case. The law requires registered employers to declare and be assessed on all payments they make to net CIS subcontractors regardless of their own CITB levy status. This can result in both parties being assessed to levy on the same pieces of work, an approach deemed lawful.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A contractor has been ordered to pay almost \u00a322,000 after it lost its appeal against paying the Construction Industry Training Board\u2019s (CITB) levy. Surrey-based MJL Construction Associates took the CITB to an employment tribunal in Bury St Edmunds last November to dispute paying levies due for 2021 and 2022. According to a judgment in the &#8230;<\/p>\n","protected":false},"author":155153,"featured_media":372363,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[578,575],"tags":[],"class_list":["post-535740","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","category-skills"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v26.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Contractor loses \u00a322k appeal over \u2018failing\u2019 CITB levy system | Construction News<\/title>\n<meta name=\"description\" content=\"A contractor has been ordered to pay almost \u00a322,000 after it lost its appeal against paying the Construction Industry Training Board\u2019s (CITB) levy.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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