CIS Tax Refund: Could You be Owed Money?

Are you a subcontractor in the construction industry? Did you know, HRMC may owe you a tax refund? As a CIS subcontractor, your contractor is required by law to deduct 20% of your pay and send it to HMRC to pay for your tax and NI contributions. However, this can sometimes lead to you overpaying on tax. That’s where a CIS Tax Refund comes in, allowing you to claim back what you’re entitled to and get your cash back in your pocket where it belongs. Claiming your CIS tax refund can be complex and time-consuming, though. Some companies make you print, sign and post your tax return info, complicating the process and delaying your CIS tax refund. What’s more, the rules can be complicated and difficult to follow, which could lead to you not getting everything you’re owed! It doesn’t have to be this way, though. Here at Danbro, we conduct fast, compliant, CIS tax returns online every year, helping thousands of subcontractors like you get the money you’re owed. With our exclusive online service, it takes no time at all for you to provide your CIS tax return info and start your claim. But, what is CIS; how do CIS tax returns work; and are you eligible for a CIS tax refund? Get the answers you need to your Frequently Asked Questions, below…

What is CIS?

The Construction Industry Scheme, or CIS, is a tax deduction scheme involving contractors and subcontractors from the construction industry. Under CIS, a contractor will deduct money from a subcontractor’s pay and send it to HMRC. The money’s considered as an ‘advance payment towards the subcontractor’s tax’.  

Why Does CIS Exist?

The construction industry scheme exists to ensure tax compliance within the construction industry. It was first introduced by HMRC in 1971 to crack down on increasing rates of non-compliance, as well as make it easier to trace tax compliance on those working on many different short term contracts throughout the year.  

Who Needs to Register for CIS?

All contractors who pay subcontractors for construction work in the UK must register for CIS. Whilst subcontractors do not have to register for CIS by law, deductions will get taken at a higher rate (30% as opposed to 20%) if they choose not to. Furthermore, CIS does not apply to payments made to PAYE employees working in the construction industry.

What Classes as ‘Construction’ for CIS?

The list of professions for CIS generally includes most things to do with active construction, such as:

• Masonry & Roofing: Brickwork, plastering, and roof installation.

• Structural Elements: Foundations and steel frame erection.

• Civil Infrastructure: Roads, bridges, and tunnels.

• Site Preparation: Groundworks, drainage, and earthworks.

However, there are some roles which are excluded. You can find a full list of roles on the government website, here.  

Am I eligible for a CIS tax refund?

If you’re a subcontractor, and you’ve paid too much tax, you could get a CIS tax refund. As a subcontractor, you’re responsible for paying the correct amount of tax for your small business – regardless of whether you’re registered with CIS. Reasons you might have paid more tax include if you have any unclaimed expenses, or have worked different amounts week to week.    

When Can I Claim For a CIS Tax Refund? What are the Deadlines?

The best time to claim your CIS refund is just after the tax year ends (5th April). This is because you will have a full years’ information, whereas claiming before this date could lead to an inaccurate claim. It’s best to get your claim in quickly though, in order to get your money back as soon as possible. With Danbro, you can pre-register your information with us before the end of the tax year, ensuring your return gets prioritised as soon as the tax year ends.

How do I get my CIS tax back?

If you’ve had too much tax deducted under CIS, you could be entitled to get some of your CIS tax back. To make sure you get your CIS tax refund promptly, you need a specialist provider to save you time, reduce stress, and ensure compliance. At Danbro, we’re specialists in CIS tax returns. For only £249 (+VAT), we’ll prepare and submit your CIS tax return, making sure you get more of the money you’re entitled to.

Get Started

How long does a CIS tax refund take?

With Danbro, it doesn’t take long to get your CIS tax refund. Here’s how you can get your CIS tax back:

1. Register online, here.
2. Once registered, submit your CIS tax return information to our dedicated team.
3. We’ll run a secure check on your information and make sure we’ve got what we need.
4. Once we’ve prepared your return, you can approve your claim online in one quick click! We’ll then submit your CIS tax return to HMRC.
5. You’ll get your money quickly! Our small fee gets deducted from your CIS tax refund.

  When it comes to arranging your CIS tax return, compliance is key. So, we make no promises in relation to refunds that HMRC has not approved. With Danbro, you’ll receive a full record of your submission. We’ll also provide regular updates on the status of your tax rebate. It’s swift, simple and stress-free. All you need to do is sit back and consider how to spend your CIS tax refund.

Register Now

Terms, Conditions & Exclusions Apply