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If you work as a subcontractor under the Construction Industry Scheme (CIS), you're probably familiar with having tax deducted from your payments before you're even paid. While these deductions are meant to cover your tax liability, many subcontractors overpay and can reclaim some of that money — especially if they claim their allowable expenses.
In this guide, we'll explain what allowable expenses are, why they matter, and how to claim them correctly.
What Are Allowable Expenses?
Allowable expenses are costs you incur wholly and exclusively for the purpose of your work. These can be deducted from your income before calculating your taxable profit, which means you pay less tax — and can potentially get a bigger refund when filing your Self Assessment tax return.
For CIS subcontractors, allowable expenses are an important way to offset the 20% or 30% tax deducted by contractors throughout the year.
Common Allowable Expenses for CIS Subcontractors
Here's a breakdown of expenses you can typically claim:
- Tools and Equipment
- Hammers, drills, saws, ladders, power tools, and other job-specific equipment.
- Repair and replacement costs are also deductible.
- Protective Clothing (PPE)
- Hard hats, steel-toe boots, gloves, high-vis vests, safety glasses.
- Everyday clothing is not deductible.
- Vehicle Costs or Mileage
- Use of your own vehicle for work purposes (not commuting to a single permanent workplace).
- Claim at 45p per mile for the first 10,000 miles, or actual costs like fuel, servicing, insurance.
- Public Liability Insurance
- Fully deductible as it's essential for construction work.
- Professional Fees
- Accountant's fees, legal advice, trade body memberships.
- Training and Qualifications
- Relevant safety training, certification renewals, specialist skill courses.
- Materials Not Reimbursed by the Contractor
- Cement, timber, screws, nails, paint, and any other supplies you pay for yourself.
- Home Office Costs
- If you do admin, bookkeeping, or planning from home, a portion of your household bills may be claimed.
Expenses You Cannot Claim
It's just as important to know what's not allowable. You generally cannot claim:
- Everyday clothing
- Personal phone bills (unless apportioned for work use)
- Non-business travel
- Meals, unless working away from your usual base
Why Tracking Expenses Matters
If you're under CIS, you've already had a fixed percentage deducted from your pay. By claiming allowable expenses, you can reduce your taxable profit and increase your tax refund.
Failing to claim these costs means paying more tax than you need to.
How YRF Accountants Can Help
At YRF Accountants, we work with CIS subcontractors across Bolton, Manchester, and the UK to:
- Identify all allowable expenses
- Keep records HMRC will accept
- File accurate Self Assessment tax returns
- Maximise refunds and minimise tax bills
We've helped clients recover thousands in overpaid CIS tax by making sure every allowable expense is claimed.
Claim What's Yours
If you're unsure whether an expense qualifies, get professional advice. We'll review your records and ensure you're claiming everything you're entitled to — and nothing you're not.
Book your free CIS expenses review
Local CIS experts in Bolton & Manchester, helping subcontractors nationwide.
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