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If you're a subcontractor working in the UK construction industry, you may be entitled to a CIS tax refund — and not even know it.
Under the Construction Industry Scheme (CIS), contractors deduct tax from subcontractors' pay and send it to HMRC. The standard rate is 20% if you're registered, or 30% if you're not.
While this is intended as an advance payment towards your annual tax bill, many subcontractors overpay and can reclaim hundreds or even thousands of pounds.
What Is a CIS Tax Refund?
A CIS tax refund happens when the total deductions your contractor has taken from your payments exceed your actual tax liability for the year.
Common reasons for overpayment include:
- High CIS deductions but low total annual income
- Significant allowable business expenses reducing your taxable profit
- Working for only part of the year
When Can You Claim Your Refund?
You can apply for a CIS refund after the tax year ends on 5 April. Once you submit your Self Assessment tax return, HMRC will compare your deductions with what you actually owe. If you've overpaid, they'll issue a refund — often within 2–8 weeks.
Step-by-Step Guide to Claiming Your CIS Refund
1. Gather Your CIS Deduction Statements
Your contractor should provide you with monthly statements showing how much tax they deducted.
2. Record All Your Income and Expenses
Keep receipts and invoices for all allowable expenses, such as tools, PPE, mileage, and insurance.
3. Complete Your Self Assessment Tax Return
Include:
- Total CIS income
- CIS tax deducted (from statements)
- Allowable expenses
4. Submit to HMRC and Await Processing
If your deductions exceed your tax liability, HMRC will process a refund directly to your bank account.
Tips to Maximise Your Refund
- Claim every eligible expense — even smaller ones add up over a year.
- Keep organised, digital records so you can quickly respond if HMRC asks for evidence.
- Use an accountant to ensure you don't miss deductions and file without errors.
Why Use YRF Accountants?
Our CIS services help subcontractors across Bolton, Manchester, and the UK:
- Track and claim all allowable expenses
- Prepare accurate Self Assessment tax returns
- Speed up HMRC refunds by ensuring complete submissions
We've helped clients reclaim thousands in overpaid CIS tax — sometimes within just two weeks of filing.
FAQs About CIS Refunds
How long does it take to get a CIS refund?
Usually 2–8 weeks, but it can be faster if your records are complete.
Can I claim for previous years?
Yes — you can claim refunds for up to four years, but the process is more complex.
Do I need an accountant?
Not legally, but an accountant can ensure you claim everything you're entitled to and avoid delays.
Ready to Claim Your Refund?
Don't let HMRC hold onto your overpaid tax. Let us help you get it back quickly and hassle-free.
Book your free CIS refund consultation
Serving subcontractors in Bolton, Manchester, and across the UK.
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