Amount of the levy5

1

The levy assessed in respect of any leviable establishment shall be the aggregate of—

a

an amount equal to 1.5 per cent. of the sum of—

i

the total emoluments of all persons specified in article 4(3) who are site employees employed in the base period at or from the establishment by the employer, and

ii

the total net labour-only payments made in the base period for such persons who are site employees,

where that sum exceeds £75,000; and

b

an amount equal to 0.18 per cent. of the sum of—

i

the total emoluments for all persons specified in article 4(3) who are off site employees employed in the base period at or from the establishment by the employer, and

ii

the total net labour-only payments made in the base period for such persons who are off site employees,

where that sum exceeds £1,000,000.

2

For the purposes of paragraph (1) above the net labour-only payments made in the base period is the difference between labour-only payments and labour-only receipts during that period (and where labour-only receipts exceed labour-only payments the net labour-only payments shall be zero) and for the purposes of this paragraph—

a

“labour-only payments” in any period means the sum which (rounded down where necessary to the nearest £1) represents all payments (including payments for the incidental use of tools) made by the employer during the period under labour-only agreements for services rendered to him in his trade or business carried out at or from the establishment; and

b

“labour-only receipts” in any period means the sum which (rounded down where necessary to the nearest £1) represents all payments (including payments for the incidental use of tools) received by the employer during the period under labour-only agreements for services rendered by him or on his behalf in his trade or business carried out at or from the establishment.