How to claim a CIS refund

If you’re a subcontractor under the Construction Industry Scheme (CIS), you might be eligible to claim a CIS refund! As part of the scheme, tax is deducted from your payments by contractors, but don’t fret, there’s a good chance you can get that money back. We’ll walk you through the process step by step, so you can have that cash back in your pocket before you know it. 🙌

What is a CIS tax refund? 

A CIS tax refund is basically the tax that’s been deducted from your earnings as a subcontractor under the Construction Industry Scheme, getting sent back to you. 

These deductions are actually an advance on your annual tax bill, but if you’ve overpaid, you could claim a CIS refund. In other words, if you’ve had too much taken off, some (or all!) of it could be coming right back to you. 💰

What can you claim back? 

So, what exactly can you claim a CIS refund for? Well, if too much tax has been deducted for the work you’ve done, you’re eligible for a refund. 🎉 

But wait, there’s more! You can also claim CIS tax back for certain work-related expenses. Here’s a quick rundown:

However, you can’t make a CIS repayment claim for personal expenses or anything unrelated to your construction work. So, no claiming for your takeaway coffee on the way to the job site. Stick to the work stuff, and you’ll be all set. 

Who can claim a CIS refund? 

Not every subcontractor will be eligible to claim a CIS refund. To be eligible, you need to meet the following criteria:

• You’re registered under the Construction Industry Scheme (CIS). 📑
• You’ve had tax deducted by a contractor under CIS .
• You’re self-employed or work as a sole trader, partnership, or limited company in the construction industry. 
• You’ve paid too much tax or National Insurance and wish to claim it back. 
• You’ve filed a Self Assessment tax return or are eligible to file one. 📝

If this sounds like you, then you’re likely eligible to claim a CIS refund!

What you’ll need to claim your CIS refund 

Before diving in, it’s important to make sure you’ve got everything in order. Here’s what you’ll need to claim a CIS refund:

• Company name, telephone number and address ☎️
• PAYE reference number (the number your contractor used when they deducted tax). 
• Company unique tax reference number (this is assigned to you and can be found on previous tax documents). 
• Estimated overpayment amount.

Additional information

While you don’t need to send anything extra with your claim unless you’re claiming for the current year, HMRC may ask for more details if your claim doesn’t match their records. Here’s what you might need to provide:

• Payslips or monthly deduction statements: these will show the amount of tax deducted under the CIS for each payment you’ve received. 
• Invoices for the work you’ve completed: these verify the work you’ve done and payments you’ve received. 🧾
• Proof of expenses: if you’re claiming for work-related expenses like tools, equipment, or travel costs, you’ll need receipts or supporting documents. 

Having all these documents ready and organised will help ensure your claim is processed efficiently and reduce any delays. The more thorough you are with your paperwork, the quicker you’ll get your CIS refund! 🏃‍♂️

How to calculate your refund

Wondering how much your CIS refund might be? The amount you could claim back depends on how much tax has been deducted from your payments compared to what you actually owe.

Generally, construction workers claim back an average of about £2,000, but the exact figure varies depending on your earnings and work-related expenses. For example, if you’ve earned below the personal allowance limit (£12,570) and your tax deductions exceed what you owe, you might be eligible for a full refund. 🤑

To get an estimate of what HMRC might owe you, try out our CIS tax rebate calculator. It’s a handy tool that gives you a rough idea of what you can expect back, without any complicated math! 

How to submit a claim for a CIS refund 

Ready to claim your CIS refund? There are two ways to submit your claim. Let’s break it down:

Claim online 

The quickest and easiest way to claim a CIS refund is online. Here’s how:

The online process is much faster and generally more efficient. Plus, you can track your claim’s progress. 👀It usually takes 6-12 weeks to process and pay a claim for a CIS refund. 

Claim by Post 

If you prefer to go old-school, you can still claim a CIS refund by post. This method takes a little longer, but it’s still a valid option. Here’s how to do it: 

HMRC’s processing times can vary, and delays do happen, so it’s always a good idea to keep track of your claim’s progress online or via the CIS helpline number (0300 200 3210). 😌

How to amend a CIS refund claim 

Oops! If you realise you’ve missed something or need to change your CIS repayment claim, don’t worry, we all make mistakes now and then! Here’s what you need to do:

Amending online

If you submitted your claim online, simply log in to your HMRC account, go to your claim details, make the necessary updates, and submit your amended claim. 🖥️

Amending by post

If want to amend your claim in writing: 

• Mark it ‘revised claim’ ❌
• Tell HMRC the full amount you’re claiming
• Refer back to your original claim

It’s best to tackle any mistakes head-on as soon as you spot them, especially if they’re messing with the amount of CIS tax deducted or your final refund. The quicker you sort it out, the quicker you’ll get the correct amount back in your pocket! 💸

Claim your CIS refund with confidence 

Claiming a CIS refund doesn’t have to be a headache. With the right documents and a little patience, you could have that overpaid tax refunded in no time. And if you’re feeling overwhelmed or unsure about the process, don’t hesitate to reach out to an accountant. We’ve got the expertise to help you claim your CIS refund and make sure you get back everything you’re owed. 🙌