nnual Levy Return Guidance Notes 2015 CONSTRUCTION step by INDUSTRY step guide to completing your nnual Return Form
www.citbni.org.uk
Important Notice to Levy Payers Levy 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 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 NI with a recent Employer Tracking Survey concluding that 74% of employers think the Levy/Grant system is important for maintaining the level and quality of training within the industry as a whole and 80% of employers believe the Levy/Grant system should continue. s 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, 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 nnual Return Form to enable NI to calculate your levy and as a result you are respectfully asked to submit the completed form to NI not later than 4.00pm on 28 ugust 2015. For the fifty first levy period, (1 September 2015 to 31 ugust 2016) 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 2015 to 31 ugust 2016 will remain at 80,000. Please note that if you fail to complete the nnual Return Form, NI has the right to estimate your emoluments for the relevant tax year. 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. 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 s You Earn (PYE) and subcontractors. Employer means a person who is an employer in the construction industry at any time in the levy period. Labour Only Subcontractors covers all payments made by you for work done under labour only agreements and includes payments to recruitment agencies and labour only subcontractors. Recruitment gency a business that works for organisations to find people for jobs when the organisation needs them. 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 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 nnual Return form. Main ctivity is the activity which you would spend most time involved in. Secondary ctivity 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 pril 2015. Levy Threshold is the amount of gross emoluments paid to PYE and labour only subcontractors within the relevant tax year beyond which you are liable for payment of levy. Option the employer s choice to base the levy on the current tax year rather than the previous tax year. 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 51). With effect from 1 October 2015, 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 2
Points to Remember when Completing the nnual Return Form nnual Return Forms must be completed and returned before 4.00pm on 28 ugust 2015 Taking the option will not be accepted after 4.00pm on 28 ugust 2015 under any circumstances nnual Return Forms can be completed online at www.citbni.org.uk on or before 28 ugust 2015 Username and Password for online Returns can be found on the front of the 2015 nnual Return Form or you can contact NI for these details If your company trading name has changed please make sure you amend the details on the hard copy nnual Return Form, or email levy@citbni.org.uk. These details cannot be changed online. Emoluments to be included should be the Gross emoluments to PYE and Labour Only Subcontractors relating to work undertaken in Northern Ireland Exclude payments made to PYE 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 2015 Registered List of Levy Payers 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 nnual Return Form Please assist NI by completing your email address as we plan to communicate more with employers electronically. Registration Certificates are only issued upon request and must be requested well in advance of when they are needed. Registration Certficates can only be issued if the employer has provided actual figures to NI. Please allow a minimum of 5 working days for issue of the certificates following your request. NI will charge for this service. Please contact the Levy Team for further information. Please note Grant will only be paid to employers who submit an actual completed nnual Return Form. Grants will be held until 29 February 2016 to allow actual emoluments to be returned. Grant will be declined after this date if not returned. (See full Terms & Conditions of Grant 2015/16) 3
Guidance on Completion of 2015 nnual Return Form Note 1 Details of your Business Please notify the Levy Team, in writing, of any changes to your business. These details are all deemed essential and we would request you to complete all contact details including contact telephone numbers and email addresses. NI would encourage you to provide one contact email address to enable us to increase communication by means of email. Please advise how you prefer to be contacted in Part 1. If construction activities which are not specified within our legislation are part of your establishment, 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 2 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: n 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 nnual 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. Note 3 ctivity 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 Employer Organisation We consult regularly with employer organisations on key issues affecting the needs of the industry. It is therefore important that you tell us of all the employer 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 pril 2015. 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 2015 and pril 2016 which must be returned detailing emoluments for the periods 6 pril 2015 to 5 October 2015 and 6 October 2015 to 5 pril 2016. 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 take the Option. Important Note: If you fail to complete and return your 1st Option form by 11 November 2015, your levy will be assessed on the previous tax year without further notice or reminder and you will be unable to avail of the current year Option. No excuses will be accepted for the late return of the first or second option forms received after the deadline. NB: If you take the Option, your completed nnual Return Form must be received by NI no later than 4.00pm on 28 ugust 2015. NI will accept online, faxed or emailed copy on or before 4.00pm on 28 ugust 2015. We will not be held responsible for Option applications which have not been received prior to the deadline stated. pplications received after 4.00pm on 28 ugust 2015 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. NI would advise anyone wishing to take the option to ring on 028 9082 5466 to ensure its receipt before 4.00pm on 28 ugust 2015. Note 6 bout your Workforce Please write in Part 7 the average number of employees directly employed during the tax year ended 5 pril 2015. Please also indicate if you engage subcontractors and/or recruitment agencies. Note 7 Payments (i) Emoluments to be included - PYE 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. lso 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 PYE information required on the nnual Return Form. It is therefore essential to retain a copy of each of these. 5
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 nnual 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 VT. If you employ labour only subcontractors who are not levy payers, you are liable to pay levy on all emoluments made to them. lso 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 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 Registration 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. Sole trader drawings, Partner drawings and Dividends. See Note 2 for information on establishments. 6
Note 8 ccountant Details Please complete this section with details of your accountant. NI will not contact your accountant without your permission. Note 9 Direct Debit Payments NI 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. lthough 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 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 NI collecting the next instalment of levy. 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 BCS*. increase your grant payment by 1.5% when you complete your nnual Return Form online by 4.00pm on 28 ugust 2015. 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. ll other conditions of grant apply. Note 10 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. dditional levy for prior years cannot be collected by Direct Debit. * payment to be made within 30 days from date of invoice 7
Queries If you have any difficulty completing this form, please contact us on (028) 9082 5466 or email levy@citbni.org.uk NI Website NI s website has the facility to allow employers to file their nnual Return Form online and we would encourage all employers to use this facility. Your username and password are on the front cover of the 2015 nnual 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 nnual 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 NI. 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 VT on the payments. Under the Industrial Training (Northern Ireland) Order 1984 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 1996 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 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 PYE. You may want to get legal advice about your own circumstances. 9
Pay your Levy the easy way and sign up for NI s Direct Debit Scheme 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. 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. ll you need to qualify for Direct Debit is to: Return your 2015 NI nnual Return Form before 4.00pm on 28 ugust 2015 and send it to the Levy Team, NI, Nutts Corner Training Centre, 17 Dundrod Road, Crumlin, Co ntrim, BT29 4SR. Complete the Direct Debit Mandate which is enclosed with the nnual Return Form and return it to the Levy Team, NI, Nutts Corner Training Centre, 17 Dundrod Road, Crumlin, Co ntrim, BT29 4SR. 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. fter you have agreed to pay by Direct Debit instalment, we will do the rest for you. Your levy will be calculated in October 2015 and will be debited from your account in 10 equal instalments commencing in October 2015. NI can only calculate levy based on the information provided on the nnual Return Form. NI can only apply the direct debit scheme to employers who have provided actual figures on their 2015 nnual Return Form. 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/ BCS or debit or credit card. You cannot pay by direct debit if you have elected to base your levy on the 2015/16 tax year ie the Option. 10
nswers to Our Frequently sked Questions Q1 Q2 Q3 Q4 Why am I registered with NI? You have a statutory requirement 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 NI? You cannot de-register with 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 nnual 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 2015 nnual Return Form in online at www.citbni.org.uk before 4.00pm on 28 ugust 2015. Please contact us and we can talk you through it if you are experiencing any difficulties. What figures do you require on my nnual Return Form? You must give the gross amount paid to all PYE employees including working directors and Q5 Q6 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. lso 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 & pril. 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. 11
Q7 Q8 Q9 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? This is the employer s choice to base the levy on the current tax year figures ie pril 2015/16. 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 28 ugust 2015, unless it is your first year of trade. This deadline is strictly adhered to. Late Option requests will be refused without exception. What are the benefits of being registered with NI? s 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 NI grant scheme provides, you also receive benefits from services including training and careers support. 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? 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 NI if you wish to pay by direct debit by completing Part 9 of the nnual Return Form and completing a Direct Debit Mandate annually. Q11 Why is the person I am working for deducting levy from my pay? 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 Registration Certificate to show the main contractor that I am paying levy directly to NI? Registration Certificate can be issued to any levy payer upon request. Registration Certficiates can only be issued if the employer has provided actual figures to NI. Please allow a minimum of 5 working days for receipt. NI will charge for this service. Please contact the Levy Team for further information. Q13 Do I include VT? No. VT should not be included. 12
Q14 What methods of payment do you offer? Electronic (ie BCs) Sort Code: 95-02-02 /C No: 10 12 52 37 /C Name: Construction Industry Training Board (Please quote your NI registration number if paying electronically) 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 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? 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 BCs for those employers who have requested this method of payment. You can currently do the following online: Complete your nnual Return Form and submit it before 4.00pm on 28 ugust 2015. Complete grant applications online. Check the Training Directory online. Check latest news and events online. Q16 Can I fill the Option Forms in Online? Yes. You can complete the 2015 nnual Return Form and elect to have your levy based on the 2015/16 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 pril and should be completed within 30 days and returned to NI. Failure to return either Option form before the stated deadline will result in the withdrawal of the Option. The levy will be calculated on the previous tax year emoluments without further notice or reminder. For further information contact: NI Nutts Corner Training Centre, 17 Dundrod Road, Crumlin BT29 4SR Tel: 028 9082 5466 Fax: 028 9082 5693 Email: levy@citbni.org.uk 13
For further information contact: NI Nutts Corner Training Centre 17 Dundrod Road Crumlin BT29 4SR Tel: 028 9082 5466 Fax: 028 9082 5693 Email: levy@citbni.org.uk www.citbni.org.uk NI is a partner in ConstructionSkills, the Sector Skills Council (SSC) for the UK construction industry, and is increasing employer engagement in training, providing labour market insights on future skills needs and developing standards and qualifications for the sector. For more details on NI visit: citbni.org.uk