CIS tax return, and your refund claimed.
If contractors deduct tax from your payments under the Construction Industry Scheme, you usually need a Self Assessment return to settle the position. We claim every expense and recover any tax you have overpaid.
How CIS tax works
Contractors deduct 20% from registered subcontractors and 30% from unregistered subcontractors, and pay it to HMRC on your behalf. Subcontractors with gross payment status receive their payments without deduction.
The deductions are treated as tax already paid. Once your allowable expenses are set against your income, your return shows whether you owe more or are due a refund.
What is included
- Self-employed Self Assessment return
- CIS deductions matched to your payment statements
- Allowable expenses such as tools, materials, vehicle costs and insurance
- Refund claims where too much tax was deducted
- Filing with HMRC and written confirmation
Authorised and regulated
Is Cheap Tax Returns authorised and regulated? Yes.
Your return is prepared by qualified UK accountants holding qualifications from the leading accountancy bodies: ICAEW, ACCA and AAT. We are also on the ICAEW approved employers list, so you can file with confidence.
Regulated by the professional bodies. Reviewed by qualified accountants. Part of Accotax.
Worked example
A worked example: CIS deductions and refund
Illustrative figures for a registered CIS subcontractor, 2025/26 rates. Your own refund depends on your income, costs and other earnings.
The figures
- Labour payments: £30,000
- CIS deducted at 20%: £6,000
- Allowable costs: £5,000
- Profit: £25,000
The tax
- Taxable profit: £12,430
- Income Tax at 20%: £2,486
- Class 4 NIC at 6%: £745.80
- Total: £3,231.80
What this means
- CIS paid: £6,000
- Tax and NIC due: £3,231.80
- Refund: about £2,768.20
- Keep every CIS statement
In depth
CIS tax returns explained
The Construction Industry Scheme means tax is deducted from your payments before you receive them. Most subcontractors can reclaim some or all of it through a tax return.
What is the Construction Industry Scheme?
Under CIS, contractors deduct money from payments to subcontractors and pass it to HMRC as an advance towards the subcontractor’s tax and National Insurance. Deductions apply to labour, not to materials.
How much is deducted under CIS?
Registered subcontractors have 20% deducted, unregistered subcontractors have 30%, and those with gross payment status have nothing deducted. Registering with HMRC as a subcontractor is quick and lowers the deduction.
How do I get my CIS money back?
Your deductions appear on the payment and deduction statements your contractor gives you. You include them on your Self Assessment return, and if more tax was deducted than you owe, HMRC refunds the difference. Many subcontractors are due a refund.
Can I get gross payment status?
You must pass a business test, a compliance test and a turnover test. Sole traders need a net construction turnover of at least £30,000 over 12 months, excluding materials and VAT.
Why use Cheap Tax Returns for your CIS tax return?
Cheap Tax Returns is part of Accotax, a UK accountancy practice. Our fees are fixed and quoted in writing before we start, the work is prepared by an accountant and checked before filing, and we work online with clients anywhere in the UK. Our team holds ICAEW, ACCA and AAT credentials. For a free quote call 0203 4411 258 or email [email protected].
At a glance
CIS key dates, rates and common mistakes
Key dates
- 19th of each month: contractors file the monthly CIS return
- 31 January: online return including CIS deductions
- 31 October: paper return deadline
- 5 October: register if self-employed for the first time
Key rates
- Registered subcontractor: 20%
- Unregistered subcontractor: 30%
- Gross payment status: 0%
- Turnover test for sole traders: £30,000
Common mistakes
- Losing the monthly CIS statements
- Missing expenses such as tools and travel
- Not claiming the refund
- Mixing materials with labour in records
Questions, answered.
Many subcontractors are due a refund because the deduction is taken before expenses and allowances are applied. Your return works out the exact figure.
Your CIS payment and deduction statements, invoices, bank statements and receipts for business costs.
The usual Self Assessment deadlines apply: 31 January for online returns and payment.
Yes. Tools, protective clothing, insurance, vehicle costs, training and accountancy fees can reduce your taxable profit, which often increases your refund.
Contractors must provide a statement within 14 days of the end of each tax month. If it is missing, ask them again, and we can help you recover the figures from your bank records.
Our fees are fixed, depend on your records and are quoted in writing before we start. Most CIS returns are straightforward and quick to complete.
Keep exploring.
Know your price before we start.
- Fixed fee confirmed in writing before any work begins
- ICAEW, ACCA and AAT-qualified accountants
- Filed with HMRC and confirmed, so you have proof
- A real person on the phone: 0203 4411 258