Tax returns for builders and tradespeople.
Self-employed builders, plumbers, electricians and other trades paid under the Construction Industry Scheme. CIS deductions of 20% or 30% are taken from your payments before you see them, so a return is often the way to get money back once your costs are counted.
What to know
CIS deductions of 20% or 30% are taken from your payments before you see them, so a return is often the way to get money back once your costs are counted.
Many tradespeople are overtaxed under CIS because deductions are taken before expenses. Your return sets your costs against your income and shows the refund due.
Costs you can usually claim
- Tools, equipment and protective clothing
- Materials you buy for jobs
- Van costs, fuel and insurance
- Public liability and tools insurance
- Training courses relevant to your trade
- Subcontractor and labour costs
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.
Prepared by accountants you can trust.
In depth
Tax returns for builders and tradespeople: what to know
Construction work has its own tax rules. This is how the Construction Industry Scheme, vehicles, tools and materials affect your return.
How does the Construction Industry Scheme affect my tax return?
Contractors deduct 20% from your labour payments if you are registered with CIS, or 30% if you are not, and pay it to HMRC. That money counts towards your bill. You declare the payments and deductions on your Self Assessment return, and HMRC refunds any excess. Many tradespeople are owed a refund each year.
Which costs can I claim as a tradesperson?
Tools, protective clothing, van or car running costs, public liability insurance, trade body fees, phone and software, training courses and accountancy fees can all reduce your taxable profit. Materials you buy for jobs are also deductible, but only if they are not already reimbursed by the contractor.
Should I use simplified mileage or actual vehicle costs?
Simplified mileage is 45p a mile for the first 10,000 business miles and 25p after that, and it avoids tracking fuel and repairs. If your van costs are high, actual costs with capital allowances can be better. You cannot switch between the two methods for the same vehicle, so the first choice matters.
Do I need to register for VAT?
You must register if your taxable turnover goes above £90,000 in any rolling 12 months. Many tradespeople register voluntarily to reclaim VAT on materials and tools when they work for VAT-registered clients. We can compare the figures for you.
Why use Cheap Tax Returns for your trade business?
Cheap Tax Returns is part of Accotax, a UK accountancy practice. Our fees are fixed and quoted in writing before we start, the return 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
Builders and tradespeople at a glance
Claimable costs
- Tools, equipment and protective clothing
- Van or car costs, or 45p a mile simplified
- Public liability insurance and trade fees
- Materials bought for jobs
Records to keep
- CIS payment and deduction statements
- Invoices, receipts and bank statements
- A mileage log for each vehicle
- Subcontractor payments if you employ others
Common mistakes
- Losing monthly CIS statements
- Mixing personal and van costs
- Not claiming the CIS refund
- Forgetting the 31 January payment
Questions, answered.
Often yes. Deductions are taken before your expenses are considered, so your return can show tax overpaid.
Registered subcontractors have 20% deducted. Unregistered subcontractors have 30% deducted.
Yes. You include the CIS deductions on your Self Assessment return. If more was deducted than your tax bill, HMRC repays the difference.
All income is taxable and must be reported, whether paid by bank transfer, cash or cheque. Keep your own records of every job and payment.
You may pay no Income Tax, but you should still file if you are self-employed so your CIS deductions can be refunded and your National Insurance record is kept up to date.
Next steps
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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