CIS Tax Refund Guide: How Subcontractors Can Reclaim Overpaid Tax in the Construction Industry

If you are a self-employed subcontractor working in the UK construction sector under the Construction Industry Scheme (CIS), you may be entitled to a CIS tax refund. Many subcontractors unknowingly overpay tax throughout the year, but with the right guidance, you can legally reclaim this money from HMRC.

At SV&Co Accountancy, we specialise in helping construction workers maximise their refunds quickly and efficiently. This guide explains who is eligible, what can be claimed, and how the refund process works.

What Is the Construction Industry Scheme (CIS)?

The Construction Industry Scheme (CIS) requires contractors to deduct tax from payments made to self-employed subcontractors and submit it to HMRC on their behalf. These deductions are typically made at a flat rate of 20%, or 30% if you are not registered with CIS.

However, these deductions often do not account for your personal allowance or work-related expenses, which leads to overpayment of tax — and that’s where your CIS refund comes in.

Who Is Eligible to Claim a CIS Tax Refund?

You may be eligible to claim a CIS refund if:

• You are a self-employed subcontractor registered under CIS
• You have had tax deducted from your payments by contractors
• You incurred allowable business expenses
• You are required to submit a Self Assessment tax return

Trades commonly claiming CIS refunds include builders, carpenters, electricians, plumbers, roofers, decorators, groundworkers, and other construction-related professionals.

What Can You Claim as Allowable Business Expenses?

To maximise your refund, it is important to claim all legitimate business-related expenses. These may include:

• Tools and equipment
• Protective clothing and safety boots
• Travel and mileage to job sites
• Vehicle expenses and fuel
• Public transport fares
• Insurance premiums
• Mobile phone (business use portion)
• Office and stationery supplies
• Accountant or bookkeeping fees
• Courses, training, and certifications

At SV&Co Accountancy, we ensure that all your claims are compliant with HMRC regulations while maximising your refund.

How to Claim Your CIS Tax Refund: Step-by-Step Process

1. Register for Self Assessment

You must be registered with HMRC for Self Assessment and have a valid UTR (Unique Taxpayer Reference).

2. Collect All Required Documents

You will need the following:

• CIS deduction statements or payslips from contractors
• Records of business income and expenses
• Receipts and invoices
• Bank statements
• Proof of identity and address

3. Submit Your Self Assessment Tax Return

You must submit your tax return for the relevant tax year. The CIS deductions you have suffered will be offset against your final tax liability, and any overpaid tax will be refunded.

4. Receive Your Refund

Once your return is submitted, HMRC usually processes the refund within 2 to 4 weeks, depending on their workload.

How Much Can You Expect to Receive?

Most subcontractors receive refunds ranging from £1,000 to £3,000, depending on:

• Total income received under CIS
• Amount of tax deducted
• Business expenses claimed
• Other income or tax liabilities

Our experienced accountants can calculate your potential refund and ensure you receive the full amount you are entitled to.

Can You Claim for Previous Tax Years?

Yes. You can claim CIS tax refunds for up to four previous tax years. If you have missed previous claims, we can assist you in recovering those amounts from HMRC.

Why Choose SV&Co Accountancy to Handle Your CIS Refund?

SV&Co Accountancy, based in Southall, specialises in tax and accountancy services for construction industry professionals. With our tailored approach and industry expertise, we:

• Identify all allowable expenses to increase your refund
• Ensure your tax return is accurate and submitted on time
• Deal with HMRC on your behalf to speed up the refund process
• Offer transparent fixed fees with no hidden charges

We make the process stress-free and efficient — so you can focus on your work while we handle the paperwork.

Contact SV&Co Accountancy Today

If you think you have overpaid tax through CIS deductions, do not delay. Let SV&Co Accountancy help you reclaim what is rightfully yours.

SV&Co Accountancy
8 Stanley Road, Southall, UB1 1PA
Email: info.svco@gmail.com
Tel: 07957 946 562

Frequently Asked Questions

Q: When can I apply for my CIS refund?
You can apply after the end of the tax year, from 6 April onwards.

Q: What if I am not registered for Self Assessment?
You will need to register with HMRC and obtain a UTR before you can submit a tax return and claim a refund.

Q: Is there a deadline for claiming a CIS refund?
Yes. You can claim for up to four years from the end of the relevant tax year.