Factoring Companies Guidebook
Construction Industry Training Board Levy
The Construction Industry Training Board Levy was established under the Industrial Training Acts of 1964, to ensure that there is an adequate supply of properly trained men and women, at all levels of industry, while at the same time improving the quality and efficiency of industrial training. This training is partly funded through the deduction of a levy on employers.
Concerns
A levy is imposed to carry out the objectives of the CITB, making all employers contribute and so share the cost of training. This sum is levied under occupational categories i.e. differing rates for various occupations and is deducted from debtor remittances.
To recover money paid to the CITB the employer may send apprentices or other employees, of any age, to attend approved courses at a technical college or other training centers.
If a company is exempt from the CITB Levy it may obtain a letter of confirmation from the CITB which can be forwarded to its customers, thus avoiding deduction.
Identification
Enquire to the Client/Prospect whether this is part of its practice
Review debtor remittance advises for any deductions and confirm the reason.
Review Terms & Conditions of the Client or Debtor.
Treatment
If CITB Levy deductions are identified, the whole background to the business needs to be investigated. It will be working within the Construction sector, which is fraught with debt erosion and factorability issues, which could, in turn, to prohibit the operation our facility.
