This article aims to simplify construction industry scheme tax refunds. If you work in the construction industry and are signed up to the CIS (Construction industry scheme), you may be due a tax refund. Whether operating under PAYE for an employer or if you’re self-employed and signed up to the Construction Industry Scheme (CIS), you may be eligible for a tax refund. If you have paid for work-related expenses and have not claimed these back from your employer or contractor you could be eligible to claim tax back from HMRC. Read on for more information about what you can claim under the CIS tax refund scheme in the 2020-21 tax year.
Table of Contents
Construction Industry Scheme Tax Guide – CIS Tax Guide 2021
In this article we take a look at the following points about CIS Tax refunds
- What Work-Related Expenses CIS Workers Can Claim Tax Back On
- Important information about what CIS can claim on tax returns
- How to Claim a tax refund on expenses as a CIS subcontractor (Construction Industry Scheme)
- What happens if you have overpaid CIS deductions?
- What happens if you were made redundant in the last year?
- Find out more about CIS tax refunds and how to make a claim
CIS Tax Guide – What Work-Related Expenses CIS Workers Can Claim Tax Back On
- Materials, Tools and Equipment
- Protective clothing/uniform
- Business travel
- Business trip expenses
- Internet phone and stationary
- Membership fees
- Motor expenses/mileage allowance
- Home office expenses when working from home
- Administration expenses including remuneration for a family member helping with administrative duties or bookkeeping
- Website and advertising
Important information about what CIS can claim on tax returns
Tax rebates on all these expenses are only applicable if you paid them yourself without any reimbursement, or when an employer made the reimbursement that was subsequently taxed.
CIS Tax Guide – How to Claim a tax refund on expenses as a CIS subcontractor (Construction Industry Scheme)
Keep a record of everything that has been claimed back against your monthly or quarterly PAYE bill. Under CIS, you are still obliged to pay taxes and National Insurance even when contractors have already made deductions throughout the tax year. The contractors will provide you with a monthly statement for all deductions and payments made to you, which you can use to claim back tax.
What happens if you have overpaid CIS deductions?
If you overpaid CIS deduction, HM Revenue & Customs will pay your tax back for whatever deductions you have not yet claimed back.
What happens if you were made redundant in the last year?
In the event that you were made redundant, or your company goes into administration, you may still be able claim tax rebates. We always advise that before making any decisions regarding your tax affairs, you seek professional advice and assistance.
For more guidance on CIS tax returns and refunds, and how to make a claim, contact our CIS Tax accountants today!
Find out about our CIS Tax Refunds service and see if you’re owed any tax back.