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CIS Tax Rebates

The Construction Industry Scheme (CIS) is where a construction contractor deducts, at source, a portion of the money due to their subcontractor. Whatever amount is deducted is then passed directly to HMRC which is then counted towards the tax and National Insurance of a subcontractor. This effectively pays the tax element in advance.

How much is deducted will depend on whether or not a subcontractor is registered under the CIS system. Unregistered subcontractors usually get a 30% deduction, while the registered ones get a deduction at the standard rate of 20%. This is one of the reasons that, by the end of the financial year, the amount deducted at source often ends up being overpaid.

But a bigger reason is the fact that the deductions did not factor in the personal allowance that every taxpayer in the UK is entitled to. The personal allowance for the tax year 2018-2019 was £11,850. Because of this overpayment, many subcontractors in the construction industry are due a tax refund.

You can also claim extensively for any work related expenses such as; accountant fees, travel, telephone, tools, clothing, etc.

It is a complex process and to ensure you get the maximum tax rebate let Taxfile help you.  

View our CIS Tax Refund Newsletter HERE

CIS sub-contractor refunds

CIS Sub-contractors – Claim Your Tax Refund Now!

CIS sub-contractor refunds

It’s now time to start the process of claiming your tax refund if you are a sub-contractor working within the Construction Industry Scheme (‘CIS’). The good news is that refunds usually take around only 2 weeks through Taxfile if you come in to see us before the rush.

Why you’re due a tax refund

CIS construction workers like you are usually taxed at source before being paid, and this usually results in a tax overpayment. That’s because you were taxed on the first £11,500 of your income even though that part falls within your 2017-18 ‘Personal Allowance’, i.e. the part of your income that should be tax-free. In addition, by pre-paying the tax, you will not have offset any allowable expenses such as tools etc. To rectify this, Taxfile will help you get the figures right, offset all allowable expenses and maximise your tax refund! Most sub-contractors receive their tax rebate within just 3 to 4 weeks, through Taxfile.

What you need to do

Don’t delay – book an appointment with Taxfile today by calling 0208 761 8000 and we’ll sort it all out for you. We have staff who speak English, Polish, Pashto, Dari, Russian, French, and Dutch, should you need them on the day.

Choose our Tulse Hill (SE21) or Battersea office (SW8)

Tulse Hill Office: You can either bring your records and figures to our Tulse Hill office at 25 Thurlow Park Road, London SE21 8JP or, if it’s more convenient, choose our brand new Battersea office, which is at Studio 4, Cloisters House, Cloisters Business Centre, Battersea Park Road, London SW8 4BG. Call 0208 761 8000 for an appointment at either office.

Outside of London? No problem – click here.

Office hours now include Saturday mornings and early evenings!

Our Tulse Hill office is open 6 days a week during April and offers Saturday morning appointments and early evening appointments on Mondays and Tuesdays if standard office hours do not suit you (please call for details).

Our Battersea office is open Monday to Thursday, 11am to 7pm.

Check List

  • Book an appointment by calling 0208 761 8000;
  • Bring in records of your invoices, whether they are self-billed or your own. If any are lost, try to bring copies.
  • Bring in all your CIS statements and receipts for the period 6th April 2017 to 5th April 2018;
  • Even if you don’t yet have your most recent CIS statement, we can still make a start;
  • Show us receipts for things you use for work including tools, equipment and plant hire – the law expects you to keep proof so don’t throw anything away;
  • Bring receipts for materials too, as some can be offset to maximise your tax refund;
  • If you had any equipment or tools stolen during the year, make sure you bring a crime reference number so we can obtain tax relief on those items;
  • Bring in bank statements — if any records for income or expenditure have been lost, bank statements can prove vital to fill in the gaps and give us a better view of your overall tax situation;
  • Lastly, if you have any payslips from any employment during the year, please do also bring in those.

Contact Taxfile to get your CIS tax refund fast!

Taxfile are experts at claiming back CIS tax refunds – we do over 500 of these per year and usually sub-contractors receive their refunds in just 3-4 weeks (often sooner for those who beat the rush and come in early). Taxfile are also very well trusted by HMRC so our sub-contractor CIS submissions and refund requests are rarely questioned. And currently we’re open 6 days a week at the Tulse Hill branch!

Come and see us. Our offices are ideally located if you’re in Tulse Hill, Battersea, Brixton, Dulwich, Elephant & Castle, Streatham, Camberwell, Peckham, West Norwood, Clapham, Stockwell, Herne Hill, Clapham, Pimlico, Vauxhall, Balham, South Lambeth, Earlsfield, Southfields, Wandsworth, Chelsea, Fulham & beyond.

  • Need a Saturday morning appointment? No problem – call us on 0208 761 8000 for latest staff availability.
  • Need a late afternoon/early evening appointment on a Monday or Tuesday? Again, no problem — call 0208 761 8000.
  • Live or work nearer Battersea? No problem – come to see us at our new Battersea office or visit the Battersea Taxfile website instead — call 0208 761 8000 for an appointment.

Working through a Limited Company?

Perhaps you a sub-contractor working through a limited company? If so, that’s also no problem! As well as CIS tax refunds, we can help limited companies with accounts preparation, confirmation statements, corporation tax computations, CIS set-off rebate, National Insurance (N.I.), VAT and much more.

Call Taxfile on 0208 761 8000. We look forward to seeing you soon! Read more

CIS - tax refunds for construction workers

Construction Industry Scheme (CIS): How to Claim a Tax Refund

CIS - tax refunds for construction workersIt’s now time to start the process of claiming your tax refund if you are a subcontractor working within the construction industry and have been paying tax, in advance, through the Construction Industry Scheme (‘CIS’). In this article we will tell you how you qualify and how to claim your tax refund. First, though, a little bit of background to the scheme:

The CIS Scheme

The Construction Industry Scheme, or CIS, is a scheme whereby a contractor in the construction industry usually deducts a proportion of the money due to their subcontractor, at source. The deducted amount is then passed direct to HMRC and counts towards the subcontractor’s tax and National Insurance, the tax element effectively being paid in advance. The exact proportion deducted depends on whether the subcontractor concerned has registered under the CIS system. If the subcontractor has not registered, the deduction will usually be made at a rate of 30%. If they have already registered, then the deduction will usually be made at a rate of 20%. Either way, by the financial year end, the amount of tax deducted at source will usually end up being more than they really needed to have paid, simply because it won’t have factored in the personal allowance which every UK taxpayer is entitled to (most UK citizens can earn up to £10,000 before paying tax at time of writing, this figure being set to rise to £10,600 in the tax year 2015-16, 10,800 a year later then increasing to £11,000 by 2017-18 following the recent budget proposals). Hence, many subcontractors in the construction industry will be due a tax refund because of the overpayment. The good news is that the time to apply for the refund is pretty much now, so get in touch if you’d like our help claiming.

What kind of work does CIS cover?

You qualify to be in the CIS system if you are a subcontractor who supplies construction work to buildings. This includes labouring, decorating, site preparation and refurbishment but excludes things like architecture, surveying services, the hire of scaffolding without labour, the fitting of carpets, the delivery of materials, and finally non-construction type services such as site facilities (canteens etc.).

What if your business is not in the UK?

Even if your business is abroad, the same rules apply if you work as a subcontractor within the UK. However there are some slightly different rules regarding the treatment of taxation for non-resident workers from countries which have ‘Double Taxation’ treaties with the UK (we can, of course, also help with that — just get in contact).

Registering for CIS

If you haven’t already registered for CIS as a sub-contractor, Taxfile can help to do this for you. You’ll need to be registered for Self Assessment (we can also help with this) and this will give you your UTR (unique taxpayer reference) number. We’ll also need your name, National Insurance number, your legal business/trading name and contact details. Once registered with CIS one of the immediate benefits will be that you’ll then have tax deductions made at the 20% rate rather than at 30%, which would otherwise be the case. If your business is a legal partnership you will also need to register it for CIS but this would need to be done in addition to being registered as an individual or sole trader. Of course, Taxfile can help with that too. Once you have been registered with CIS and have passed certain eligibility criteria, it is also possible to apply for ‘gross payment status’ meaning that you’ll then be paid by the contractor without the usual ‘at source’ deductions. Instead you’ll need to pay any outstanding tax and National Insurance at the financial year end; however HMRC will review your business each year to check that you still qualify for this status (paying tax late and/or submitting returns late would put your gross payment status at risk).

Offsetting Expenses against your tax

Taxfile can also help you to offset certain expenses against your subcontractor income. This means that any tax refund will be larger — or any tax outstanding will be lower. We can offset Read more

Taxfile Autumn Newsletter Now Available

Taxfile Newsletter Autumn 2014Download our jam-packed Autumn Newsletter right here for up-to-the-minute news, ways to save money, tips, new developments and tax information from Taxfile. Includes important news regarding tax return deadlines, refunds for C.I.S. sub-contractors working in the construction industry, key dates, ways to save money, HMRC tax news for landlords, imminent price changes plus an interesting mind map showing information about our lovely multi-lingual staff! Download the newsletter here (Acrobat PDF format – right-click to save the PDF to your hard drive then open it in Acrobat Reader or alternatively left-click the link to view the newsletter directly in most browsers).