3D Force Ltd v The Construction Industry Training Board — 2025

The appellant, 3D Force Ltd, a small company carrying out mostly kitchen and bathroom refurbishment as a subcontractor under the Construction Industry Scheme, appealed against a levy of £5,147 imposed by the Construction Industry Training Board by notice dated 22 April 2024. The appeal was brought on three grounds: that the appellant was not in a category of business subject to the levy; that the levy had been incorrectly calculated; and that other businesses in similar circumstances had not been subjected to the levy.

On the first ground, the tribunal found that kitchen installation and refurbishment fell within the wide statutory definition of activities of the construction industry under Schedule 1 of the Industrial Training Construction Board Order 1964, and that the appellant was an employer for the purposes of the 2022 Order. On the second ground, the tribunal accepted the respondent's calculation, which used a multiplier of 5 applied to the declared Box C figure of £81,433 (representing the 20% CIS deduction from payments to net paid subcontractors under section 61 of the Finance Act 2004) to approximate labour costs of £407,165, with the levy then computed at 1.25%. Because the figure was above the £400,000 threshold, no Small Business Levy Reduction applied. On the third ground, the tribunal held that whether other companies had or had not been assessed was not relevant to whether the rules applied to this appellant.

The tribunal unanimously confirmed the levy and dismissed the appeal. It noted that the respondent had indicated willingness to discuss payment by instalments, although the tribunal had no power to order such an arrangement.