The Industrial Training Levy (Engineering Construction Board) Order 1998

Imposition of levy

3.—(1) The levy to be imposed by the Board on employers in respect of the thirty-fourth levy period shall be assessed in accordance with the provisions of this article.

(2) The levy shall be assessed by the Board separately in respect of each establishment of an employer, but in agreement with the employer one assessment may be made in respect of any number of such establishments, in which case those establishments shall be deemed for the purposes of that assessment to constitute one establishment.

(3) Subject to the provisions of this article the levy on each employer shall be assessed by the Board in respect of the emoluments and labour-only payments paid by him to all persons to whom paragraph (4) below applies employed by the employer in the thirty-fourth base period at relevant establishments of his (that is to say, any engineering construction establishment or establishments, or any establishment or establishments comprising engineering construction activities other than an establishment or establishments of an employer who is exempt from the levy by virtue of articles 4 and 5 of this Order), and the amount of the levy shall be as specified in paragraph (5) of this article.

(4) This paragraph applies to—

(a) in the case of an engineering construction establishment, all persons employed;

(b) in the case of an establishment comprising engineering construction activities, all persons employed wholly or mainly in engineering construction activities.

(5) The levy assessed in respect of any establishment to which paragraph (3) of this article applies shall be the aggregate of—

(a) an amount equal to 1.5 per cent. of the sum of the emoluments of all site employees (excluding those employed under a labour-only agreement) employed in the thirty-fourth base period at or from the establishment by the employer where that sum exceeds £75,000; and

(b) an amount equal to the sum (if any) by which 2 per cent. of the labour-only payments for site employees exceeds 2 per cent. of the labour-only receipts for those employees; and

(c) an amount equal to 0.4 per cent. of the sum of the emoluments of all employees (other than site employees and those employed under a labour-only agreement) employed in the thirty-fourth base period at or from the establishment by the employer; and

(d) an amount equal to the sum (if any) by which 0.5 per cent. of the labour-only payments for off-site employees (that is to say of all employees other than site employees) exceeds 0.5 per cent. of the labour-only receipts for those employees.

(6) In paragraph (5) of this article—

(a) “labour-only payments” 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 thirty-fourth base period under the labour-only agreements for services rendered to him in his trade or business carried out at or from the establishment;

(b) “labour-only receipts” 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 thirty-fourth base period from any other employers in the engineering construction industry under the labour-only agreements for services rendered by him or on his behalf in his trade or business carried out at or from the establishment.