Frequently Asked Questions about CIS tax
What is the Construction Industry Scheme (CIS)?
If you’re self-employed and work in the construction industry or on site as a plumber or heating engineer for example, you’d fall under the CIS. Construction workers who are subcontracted by contractors will have CIS deductions taken towards tax and national insurance, which are then passed through to HMRC. These Tax deductions can then be calculated at the end of the Tax year in your Self Assessment, allowing you to claim a CIS Tax refund on any CIS deductions you’ve overpaid. It can sound daunting, but having the support of experienced Tax experts makes the experience a doddle.
At the end of each tax year, you need to submit a Self Assessment tax return to HM Revenue & Customs (HMRC). From this process you’ll know exactly what tax and national insurance you owe which is offset against any tax deductions you’ve already paid which, in most cases, will entitle you to a CIS tax refund.
How do I claim a CIS Tax rebate?
Yes, our sister company IN-SYNC Credit Services may be able to pay your CIS tax rebate into your bank account as soon as we have your expenses and income information.
Can I get my tax rebate early?
If you are self-employed and working on either permanent or temporary building structures or on civil engineering projects like road works then you should qualify.
I work in the construction industry, do I qualify for the Construction Industry Scheme (CIS)?
The refund you may get back depends on three things: Your CIS deductions, total earnings and business expenses. The average Tax refund for our customers is £2,300. In some cases you can receive several years of overpaid refunds — if you’re eligible, CIS Tax can even be claimed back for the previous four years. As a CIS worker, you’ll be required to make contributions for Tax and National Insurance each month. The amount of Tax you pay is typically 20%, but will be determined by HMRC when the contractor you work for verifies your UTR number. Your refunds calculation starts by looking at your total income for the year and deducting any allowable business expenses. When you know exactly how much profit you’ve earned for the Tax year, you can then work out how much of it you have already paid. Remember, you will take into account your Tax-free earnings and any National Insurance contributions too. Finally, once you know your income, profit, Tax and National Insurance contributions, you’ll take the difference between the Tax you've already paid and the actual figure you’re required to pay. This will show you whether you’re entitled to a refund, or subject to a liability.
How do I know what I’m due back from my tax refund?
No. All of our charges for helping you with your CIS tax refund are automatically deducted from your tax rebate figure, so you won’t need to find a penny in advance (so long as your rebate sufficiently covers our fee).
Do I need to pay upfront to get my CIS tax rebate?
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