Contractors face 8% interest fees for levy payment delays

Contractors who try to delay or dodge paying the training levy will soon be hit with an 8% interest charge on overdue cash.

CITB-ConstructionSkills has approved the introduction of an interest charge on unpaid levy after taking Counsel's opinion.

Poor payers will be chased through the courts. Insiders estimate 2,500 employers could be affected, with around £375,000 of interest becoming payable.

The training board said charging interest on levy debts is a practice that is already being successfully pursued by the Northern Ireland CITB.

The plan is for the charge to take effect from the 2008 levy assessment, which will be issued in 2009.