What is CIS?

In short

• The Construction Industry Scheme: contractors deduct 20% from registered subcontractors' payments, 30% if unregistered, and pay it to HMRC.
• The deduction ignores your Personal Allowance and expenses, so most subcontractors overpay.
• You get it back by filing a Self Assessment return after 5 April.
• We file the whole return for £220 plus VAT. You see the refund and the fee before anything is filed.

Paid under CIS? We file the full return for £220 plus VAT: CIS tax refunds.

How the deduction works

Your contractor verifies you with HMRC, then deducts 20% from the labour part of each invoice, not materials. You receive a monthly statement showing the deduction. It is tax paid on account, not a final figure.

Why you are usually owed money

20% off every pound from the first pound, with no £12,570 allowance and no expenses. A subcontractor on £30,000 has £6,000 deducted. Real tax and Class 4 NI after allowance and £4,000 of expenses is nearer £3,500. The gap is the refund.

Expenses subcontractors miss

• Travel to sites in your own vehicle at 55p a mile for the first 10,000 miles (45p before April 2026)
• Tools, PPE and workwear
• Phone, insurance, accountancy
• Materials you bought and were not paid for separately

Worked example

£28,000 gross, £5,600 deducted. Expenses £4,500. Taxable profit £23,500 less £12,570 allowance is £10,930; tax £2,186 plus Class 4 NI about £656. Refund about £2,758 before our fee.

How to claim

File a Self Assessment return after 5 April with your CIS statements and expenses. Or let us do it: we register you, collect the statements, build the expenses and file. What is a CIS card covers registration.

Questions

Lost my statements.

Contractors must give them monthly; ask for copies. HMRC's record also shows deductions reported.

Am I CIS or PAYE?

A payslip with a tax code and NI is PAYE. A flat 20% or 30% deduction and no NI is CIS.

Check my rebate