Claimant v The Construction Industry Training Board

Outcome

Facts

3D Force Ltd was a small company operating under the Construction Industry Scheme, primarily doing kitchen and bathroom refurbishment work as a subcontractor. It had two employees on PAYE (director and his wife) and engaged nine subcontractors. The Construction Industry Training Board imposed a levy of £5,147 on 22 April 2024 based on payments to employees (£16,800) and subcontractors (£407,165). The company appealed on three grounds: that it was not in the construction industry subject to levy, that the levy was incorrectly calculated, and that similar businesses had not been subject to the levy.

Decision

The tribunal dismissed the appeal on all three grounds. It found that kitchen installation and refurbishment constitutes alteration/repair of part of a building and therefore falls within the construction industry. The statutory definition of 'employer' includes those engaging subcontractors under contracts for services. The levy calculation was correct, being based on CIS deduction figures which represent an approximation of labour costs excluding materials. The fact that other companies may not have been assessed was irrelevant to whether the rules correctly applied to this appellant.

Practical note

Legal authorities cited