Cases→4101230/2025

Claimant v Construction Industry Training Board (CITB)

24 November 2025Before Employment Judge M A MacleodScotlandin person

Outcome

Claimant fails

Individual claims

Otherfailed

This was an appeal against a CITB Levy Assessment. The tribunal found that the appellant's principal activities were construction industry activities (manufacturing and erecting timber buildings), and that the sales, marketing, and administrative functions were ancillary and related to these primary construction activities. The appeal was therefore dismissed and the levy assessment confirmed as correctly imposed.

Facts

Gillies and Mackay Ltd appealed against CITB levy assessments for 2022 and 2023. The company manufactures and erects timber garden buildings including sheds, garages, garden rooms and workshops. The appellant argued that 76% of its business time was spent on branding, marketing, sales, education and administration, with only 24% on construction activities, and therefore it should not be in scope for the levy. The company employed 22 staff, only 4 of whom were engaged in production or site work. The appellant had previously sought CITB registration in 2021 and received a training grant of £2,400 in 2022.

Decision

The tribunal dismissed the appeal, finding that the manufacture and erection of timber garden buildings constituted construction industry activities falling within the CITB's remit. The sales, marketing, design, customer service, administration and leadership activities were ancillary and related to the primary construction function. Without the construction activities there would be no need for the other functions. The levy was correctly imposed.

Practical note

Businesses engaged in manufacturing and erecting timber garden structures are subject to CITB levy even where the majority of staff time is spent on sales, marketing and administration, as these are ancillary activities to the primary construction function.

Legal authorities cited

The Queen on the Application of Bobcat Plant Hire (UK) Limited v Construction Industry Training Board [2003] EWHC 2383Mark Wilkinson Furniture Limited v Construction Industry Training Board CO/1318/00Firthglow Ltd v Construction Industry Training Board (case no: 1902262/2001)

Statutes

Industrial Training Act 1982 s.11Industrial Training Act 1982 s.5Industrial Training Act 1982 s.1(1)Industrial Training Levy (Construction Industry Training Board) Order 2022Industrial Training (Construction Board) Order 1964 (Amendment) Order 1992Industrial Training Act 1982 s.12(4) and (5)

Case details

Case number
4101230/2025
Decision date
24 November 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Name
Construction Industry Training Board (CITB)
Sector
public sector
Represented
No
Rep type
in house

Claimant representation

Represented
No
Rep type
in house
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