Tax Rebates for construction & Trades CIS

Understanding Tax Rebates for the Construction and Trades Industry in the UK

As a professional in the construction or trades industry, you are likely incurring work-related expenses that qualify for a tax rebate from Her Majesty’s Revenue and Customs (HMRC). From the purchase of your tools and protective clothing to travel expenses, there are numerous cost areas that are eligible for tax rebates.

What is a Tax Rebate?

A tax rebate is essentially a refund on taxes when the tax liability is less than the taxes paid. It can also be seen as a reimbursement from the HMRC for specific expenses related to your work that you’ve paid out of your pocket.

Are You Eligible?

If you’re an employee in the construction or trades industry and you spend your own money on things that are solely for your work, you might be able to get tax relief. However, you can’t claim for everyday clothing, even if you wear it for work.

For those in the construction industry, the HMRC has a special scheme called the Construction Industry Scheme (CIS)

Expenses That Can Be Claimed

As an industry professional, some expenses are inevitable. Let’s delve into the specifics of what you can claim:

1. Travel Costs

If you use your own vehicle or public transportation for work trips, these costs can be claimed. This includes trips to temporary work locations or different sites, but doesn’t include traveling from home to a permanent work location.

2. Tools and Equipment

The costs of purchasing, maintaining, and replacing tools and equipment necessary for your work can be claimed. It’s essential to note these should be items necessary for your work and not general use items.

3. Uniforms and Protective Clothing

Any expenditure on protective clothing or uniforms necessary for your role can be claimed. This includes safety boots, hard hats, high visibility jackets, and more.