CIS Tax for Subcontractors
If you work under the Construction Industry Scheme (CIS), tax is deducted from your income before you receive it. In many cases, subcontractors end up overpaying and are owed a refund from HMRC. We specialise in CIS returns and have helped many tradespeople claim back the tax they're owed.
How We Can Help:
CIS tax refund claims – we review your deductions and submit directly to HMRC
CIS Self Assessment tax return preparation
Advice on allowable expenses in the construction industry
Help registering for CIS
Ongoing CIS compliance and record-keeping support
Gross payment status applications where eligible
Why Choose Us:
We're CIS specialists with years of experience helping construction workers and subcontractors across South Yorkshire. Many of our clients are surprised by how much they're owed. We deal with HMRC on your behalf and keep the whole process simple, contact us now for a free review of your position.
How does the Construction Industry Scheme work?
Under CIS, contractors take money off your payments and pass it to HMRC as an advance towards your tax and National Insurance. Registered subcontractors have 20% deducted, and unregistered subcontractors have 30% deducted. Because these deductions don't take account of your expenses or your personal allowance, many subcontractors pay too much and are owed a refund.
An example
A self-employed joiner earns £30,000 in a year from contractors, who deduct 20% (£6,000) under CIS. After allowable expenses such as tools, van costs and protective clothing, the joiner's actual tax and National Insurance bill may be much lower than £6,000. The difference is refunded by HMRC once the Self Assessment return is filed. These figures are for illustration only. Every refund depends on your own circumstances.
How to claim your refund
Sole traders and partners claim through their Self Assessment tax return, which can be filed as soon as the tax year ends on 5 April.
Limited companies offset CIS deductions against their PAYE bill each month through payroll, and can reclaim any unused amount after the tax year ends.
Gross payment status
With gross payment status, contractors pay you in full and you pay your tax at the end of the year. You'll need construction turnover (excluding VAT and materials) of at least £30,000 a year as a sole trader, a good record of paying tax on time and a business bank account. Different turnover tests apply to partnerships and companies. We can check whether you qualify and apply for you.
What we need from you
Your CIS payment and deduction statements from each contractor
Receipts or records of your business expenses
Your UTR (Unique Taxpayer Reference)
Frequently asked questions
How long does a CIS refund take?
Once your return is filed, HMRC usually processes refunds within a few weeks, although checks can take longer.
Can I claim for previous years?
You can usually claim back overpaid tax for up to four previous tax years, so it's worth checking.
I'm not registered for CIS. Should I be?
Yes. Registering cuts your deductions from 30% to 20%. We can register you.