Claim Your Tax Back: CIS Rebate

Tax Rebate – CIS Process Explained 2015

Are you self employed and want to claim CIS tax rebate? If you are self-employed you will have had tax deducted under the CIS, you will have to complete a self-assessment tax return so HMRC can calculate how much income tax you should pay.

A CIS tax refund is a repayment of tax from HMRC because you have paid too much whilst being self employed through the Construction Industry Scheme (CIS).

You must be registered under HMRC’s Construction Industry Scheme and have to complete a self assessment tax return each tax year. When you have submitted your self assessment tax return, HMRC will work out how much tax you should have paid.

Currently the set rate of CIS tax you have to pay is 20% but if you are under CIS you are entitled to reclaim allowable expenses. Which are submitted via your annual CIS return. IF you are self employed and have allowable expenses you Maybe have overpaid tax and entitled to a CIS rebate. This all depends on a few factors:

What you will need to claim your tax back

1. How much you have earned
2. How much you have spent on allowable expenses
3. How much tax you have paid
4. Payslips or CIS statements from your contractor(s)
5. P45 or P60 (if you had any PAYE employment)
6. Bank statements

Allowable CIS expenses:

Mileage allowance
Other travel expenses
Tools and equipment purchased/hired
Clothing and laundry
Home office
General administration costs (phone, printing, post and stationary)

It is important to keep receipts or proof of purchase for each expense as they are incurred, better still to routinely file all relevant information. It is also important to remember any expenses claimed must be for business use and not personal.

How to claim tax back

CIS Tax Rebate Payout Examples

4 examples – take from the toher websites but change names!

CIS Tax Rebate Calculator 2015


CIS Next day Rebate

CIS Registration Online

In order to qualify for a CIS rebate you must be CIS registered with the Construction Industry Scheme. This is a simple process and the information can be found here on HRMC website

CIS Helpline Numbers

If you are looking for guidance on any aspects of the CIS Scheme then please telephone the CIS Helpline.
CIS Helpdesk Helpline number is 0300 200 3210

CIS Resources

CIS Scheme Online FAQ

What is CIS?

CIS stands for Construction Industry Scheme (CIS). You should be registered under this scheme if you work as a contractir and are self-employed, the owner of a limited company or a partner in a partnership or trust.
Under the Scheme, you would deduct 20% from each of your payments for HMRC. These count as advance payments towards your annual tax and national insurance bill.

What is a CIS tax rebate?

A CIS tax rebate/refund is a repayment of tax paid to HMRc under the CIS. This hapens when you have paid too much to them throughout the year.

Why would there be an overpayment?

Under the CIS, you make payments of 20% of monies earned to HMRC. However, you are entitled to reclaim allowable expenses which will reduce the amount earned and therefore you may have overpaid on your tax and NI contributions.

What expenses could I claim for?

Legitimate expenses that you can claim for include; mileage allowance or other travel expenses, accommodation needs, tools or equipment purchased or hired to allow you to undertake your work, clothing for work and then the laundry of this clothing,
advertising, phone bills, printing costs and stationary and any other general admin costs which come with being self employed.

How do I know if I am eligible for a CIS tax rebate?

You should complete a self assessment tax return each year and submit this to HMRC. On receipt of this, HMRC will work out how much tax you should have paid. This will be deducted from your actual payments and any additional monies you have paid will be paid back to you.

How do I claim my refund?

You need to submit a self assessment tax return each year. The quickest and easiest way to do this in online but you can also submit a paper return if you prefer (please note, that the deadlines for paper returns is earlier than your online return deadline). HMRC will
process your return and if monies are owed will issue repayment via bank transfer or cheque.

What information do I need to provide?

To complete your tax return and to find out if you are due any refund you will need three things; how much you have earned in the last year, how much you have paid via CIS to HMRC (should be 20% of your income) and how much you have spent on expenses.
Ideally, you should keep a record of this, perhaps in an excel spreadsheet or accounts bbok, and copies of invoices/receipts throughout the year. This will make completeing your tax return less stressful. However, you could also use payslips or CIS statements, a P45 or P60 or bank statements.

I haven’t claimed any expenses before, or missed some off my previous returns, can I still claim them?

Yes, providing the claims relate to returns that were submitted in the last four years, Unfortunately, claims against returns older than five years cannot be made, To enquire about a
retrospective claim you should make contact with HMRC as soon as possible.

How long does it take to make a claim?

Once you have submitted your tax return it needs to be checked by HMRC. It can take between two and 12 weeks for them to process your return and issue your refund.

Once I have submitted my return do I need to do anything else?

No. HMRC will process it and determine whether you are due any rebate. This will be issued by them via bank transfer or cheque.

HRMC Construction Industry Scheme (CIS) Website Help Links

1. Overview
2. How to register
3. Get Paid
4. Pay tax and get claim back deductions
5. How to get gross payment status
6. Annual review
7. Changes to you need to report