CIS tax refunds

Construction workers using the Construction Industry Scheme (CIS) can claim tax refunds for travel expenses to temporary workplaces as well as claiming back overpaid tax. The average annual rebate for CIS workers is £2,000.

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£2,500 - That's the average 4 year claim. Don't miss out!

CIS Tax Refunds

What is CIS tax and does it affect me?

CIS tax is a special tax scheme just for the construction industry. Under the CIS tax scheme, contractors make tax deductions from their subcontractors and pay the money to HMRC. The CIS tax deductions count as advance payments towards the subcontractor's tax and National Insurance.

Working on a building site keeps you busy, so there's no reason your CIS subcontractor tax rebate should be hard work too. Here at RIFT, our friendly helpful team can quickly tell you if you are due a tax rebate. You can get an idea of what you might be able to claim back from our tax refund calculator.

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What do I have to do to register for CIS?

CIS covers most types of UK construction work, with only a new minor exceptions. This means that if you're a contractor in the industry, you need to get set up for the scheme. You'll have to get registered, verify your subcontractors and take CIS deductions from their pay.  Those deductions then get sent to HMRC. You'll also have to file monthly CIS returns.

If you're a subcontractor, the scheme isn't actually compulsory. If you don't sign up for it, though, you'll end up losing 30% to the taxman instead of the standard 20% deductions. There's a chance you might qualify for gross payment status, where no CIS deductions are taken from your pay.  There are strict eligibility rules to pass before you qualify for that, though.

It's easy to end up paying too much tax through CIS and you won't get it back automatically. To claim your refund, you'll need to prove what you're owed. This is what RIFT tax refunds is all about, so get in touch to see how we can help.

Remember that CIS covers all UK construction work, even if it's done by foreign firms. There are penalties for filing late, so you have to stay on top of the paperwork.

You can find out more about how the Construction Industry Scheme affects you here.

CIS Tax Advice

What is CIS tax deduction?

CIS tax deductions are payments to HMRC that your employer takes out of your wages before you get them. They're supposed to be about clamping down on tax evasion in the industry. Unfortunately, one of the side effects of the scheme is that a lot of workers end up paying too much tax. As a result, when the subcontractor submits their tax return, most or all of their tax has already been paid. 

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CIS Tax Advice

What is the CIS tax rate and what does it mean?

The standard CIS tax deduction is 20%, so if you’re a CIS subcontractor you could well have overpaid tax.

If that sounds like HMRC's taking a huge lump out of your pay, then consider the alternative; If you don't register for the scheme, the rate shoots up to 30%! Here are details of what information you need for a CIS tax refund.

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CIS Tax Refunds

Do most CIS workers get the right amount of tax back?

Many construction workers file their own CIS tax returns. There’s nothing at all wrong with this, if you know your way around the rules. However, it's easy to miss out on CIS claims or make costly mistakes so it's important you have all the information you need for a CIS tax refund.

Specialist CIS tax rebate services exist to help people in the construction industry who work as sub-contractors to claim back overpaid tax. If you're a sub-contractor on a site being run by someone else, then your employer will be deducting tax directly from your pay before you get it. This almost always means you're losing 20% of it.

Because of this, at the end of the working year when you file your self assessment tax return, you've probably been overcharged. Basically, the tax taken from your wages during the year is probably higher than the amount you actually owe.

It takes a lot of specialist accounting knowledge to claim tax back for everything you are owed by the taxman. Every year, far too many people are still shelling out tax they don't owe. In the worst-case scenario, they don’t get any CIS tax rebate at all. Even if they do, all too often it’s nowhere near as high as it should be.

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Refer a Friend

Extra cash for you and your mates in time for Christmas

Help your mates get a tax refund in time for Christmas - and get an extra £50 in your own pocket! At RIFT, we love it when happy clients tell their friends about us.

We love it so much that we reward you for doing it! Until the 31st December we'll give you £50 for everyone you recommend (T&Cs apply) who claims with us, but we'll give you a bonus of an extra £150 if 5 people do.

That's £400 in your pocket as well as the warm glow you get from helping out your mates. Help your workmates out now and you'll both get some extra cash in time for Christmas.

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Simply enter your friend’s name and email address on our referral form, and we’ll send them a one off email to let them know you think RIFT tax refunds could help them.

  • If they get in touch and claim a refund, we’ll send you a £50 reward for your help.
  • And for every 5 you send that claim, you get an extra £150 bonus. 

Ask us any questions on Facebook, Livechat or call us on 01233 628648.

 

Customer stories

"RIFT helped me after my previous accountants messed up and left me with fines."

"One of my mates at work uses RIFT so I gave them a go because the last people who were doing my tax for me weren’t doing it properly and I ended up with £600 in fines.

The service from RIFT was fantastic, they really helped me out and I was ecstatic when I found out how much I was getting. It’s way more than I ever had before. I put the money in the baby fund, our first baby’s due in January so we’ll be able to get everything we need for her and not worry about where the money’s coming from.

The service was fantastic, especially after the last people who were doing it for me ended up getting me fined £600 because they weren’t sending off my information when they said they were, lost my documents and HMRC classed it as my fault. RIFT really helped me right out.

Scott Whitelock, 31, self-employed flooring contractor

Find out what you're owed

CIS Tax Refunds

Am I a subcontractor?

A lot of the rules around construction subcontractor tax hinge on what a subcontractor actually is. It's a more difficult question than it might seem, and getting it wrong can mean a lot of trouble from HMRC. Generally, though, a subcontractor is someone who:

  • Agrees to do work for a contractor.
  • Either does the work themselves, or has employees (or other subcontractors) do it for them.

The big problem in the construction industry is that some people have been wrongly classed as subcontractors when they're actually employees. Employment status challenges from HMRC are a nasty prospect, so it's incredibly important to make sure you've got it right. The dividing lines can be blurry, with loose terms like "supervision, direction and control" flying around. If you've got any doubts at all about your employment status, talk to RIFT straight away. We'll keep you on the right side of HMRC, and put more money back in your pocket while we do it.

CIS Tax Rebate Enquiry Tax Calculator

CIS Subcontractors

What sort of tax relief am I missing out on?

When you're claiming a subcontractor tax refund, it's easy to miss out on some of the money you're owed. The rules are complicated in places, and a lot of people either get tripped up or put off from claiming altogether. There are tricky regulations around things like mileage relief and capital allowances that not many understand. Even pricey accountants can find themselves tangled up in the system if they don't know the construction industry. RIFT Tax Refunds have been specialising in construction rebates for over 15 years. There really are no safer hands to be in.

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CIS Subcontractors

How big are my CIS deductions?

For most people, the Construction Industry Scheme means that 20% of their pay is being taken off before they get it. There are a few occasions where you might be paying more or less, though. If you aren't signed up for CIS, for instance, you'll probably get lumped with a whopping 30% deduction. This can also happen if you don't give your employer your Unique Taxpayer Reference number. Occasionally, people qualify for gross payments, where no tax is taken off at all. Gross payment status has several strings attached, though. There are tests to pass before you qualify, and annual check-ups from HMRC.

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What is a CIS card? What kinds of cards are there?

A CIS card or certificate is issued to you when you register with the Construction Industry Scheme. The kind of card you get depends on your circumstances. For example:

  • CIS A(P): The basic card issued to most subcontractors. It shows that you're eligible to have your CIS tax deducted by your employers. There's no expiry date on it.
  • CIS 4(T): This is the temporary version of the card above. You'll probably only get this if you didn't know your National Insurance number when asked. Once you have your NI number, you'll be upgraded to a permanent card.
  • CIS 6: If you're an individual, partner or director, and qualify for gross payment status, this is the card you'll get. There are tests to work out if you qualify, based on your turnover, the business you're in and how well you follow HMRC's rules.
  • CIS 5: This is for companies that can't get a CIS 6 certificate, but still qualify for gross payments.
  • CIS 5 (Partner): This is the version of CIS 5 for partners in firms.

How do I qualify for gross payment status?

Gross payment status, where no CIS deductions are taken from your pay, depends on 3 basic tests:

  • The turnover test: To pass this, you need to have had a net annual turnover of £30,000+ for 3 continuous years.
  • The business test: This checks that you're in a business that qualifies for gross payments. In general, that means construction work.  You also have to do business through a bank account and keep proper records.
  • The compliance test: This test checks whether you've got a clean record with HMRC. You must have a history of paying all your taxes and hitting your deadlines to pass it.

How does it work?

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Our Guarantee

Our guarantee means you'll never lose a penny​

When you claim your tax refund with RIFT, our unique RIFT Guarantee means that you don't have to worry about the taxman reclaiming any of your money. So long as you give us full and accurate information, if HMRC disagrees with the amount that we’ve claimed and ask for the money back, we’ll pay it. It won’t cost you a penny.

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Wondering if you can claim a tax refund or need to submit a tax return? Use our online tools to find out if you're owed money by HRMC.

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