Construction workers using the Construction Industry Scheme (CIS) can claim tax refunds for travel expenses to temporary workplaces. Overpaid tax can be claimed back for the last four years and the RIFT average 4-year rebate is £2,500.
Working on a building site keeps you busy, so there's no reason your CIS subcontractor tax return 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.
If you're a RIFT customer already and you've had your yearly reminder that it's time to start your 2015/16 claim, visit myRIFT to fill in your information for your claim.
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.
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. The standard CIS tax deduction is 20%, so if you’re a CIS subcontractor you could well have overpaid tax.
The normal rate of the CIS tax rate is 20%. 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%!
Many construction workers file their own CIS tax returns. There’s nothing at all wrong with this, if you know their way around the rules. However, it's easy to miss out on CIS claims or make costly mistakes.
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.
RIFT Refunds have the experience and expertise to set your finances straight. We know the business, we know the tax rules and we've been filing construction worker tax returns since 1999. We're the UK’s leading experts in CIS tax refunds, and we're here to save you time, stress and money.
Too many CIS workers miss out because they don't know what they're allowed to claim for. With our help, though, you'll be keeping more of your cash out of the taxman's hands.
The average CIS Tax Rebate we claim is around £2000 per year. That said, we have arranged claims of over £6000! You can claim for the last 4 tax years, so there could be a big CIS return waiting for you at HMRC.
Our standard charges are:
We take the hassle out of tax, making sure that you get back all the money you’re owed. Have a look at our full list of options and fees. It costs nothing to find out if you have a claim. You can also find out what information you'll need to provide for your CIS tax return claim here or simply give us call.
When it comes to your CIS tax rebate, you can choose from three simple options:
Just like you, we stand by the work we do. With our RIFT Guarantee if HMRC asks for any of your refund back, we’ll pay it from our own pockets! Get in touch today to see what the taxman owes you.
If you need to get your money back in your pocket more quickly then have a look at our Rapid Refund service.
CIS Legislation Change - Did you know that construction companies using an intermediary (Umbrellas, agencies or contracting companies) may no longer protect you from HMRC Status Challenges? Find out more about this vital news on our blog.
Example of an HMRC CIS Tax Refund
HMRC's rules on CIS tax deductions are complex, but as experienced tax specialists, we're well placed to make sure you get back everything you're owed and sort out any outstanding debts with HMRC.
Malcolm is a RIFT client and has been self-employed under the Construction Industry Scheme (CIS) since 2008. He’s agreed to let us share his CIS tax refund story to show just how the process works.
Malcolm didn’t pay much attention to his tax affairs, let alone his CIS return deadline. When he first contacted RIFT back in December 2012, he was dealing with four years’ worth of unpaid CIS tax returns and a demand from HMRC for £1,952 in unpaid tax, interest and penalties.
We worked closely with Malcolm to gather all the right information to handle his overdue CIS tax returns and file them safely with HMRC. Not only did we clear his tax bill, but Malcolm also got a refund of £4,350. And last year, Malcolm received a further CIS tax rebate of £1,761.
These days, he just gets in touch with RIFT every year and we take care of things from there.
Frequently asked questions
If you work in the construction industry and are self-employed (CIS), or have been so within the last 4 years, and have a question about making a tax refund you can see the most common answers below.
If you want to check anything at all, or talk through your personal circumstances, give us a call on 01233 628648 That's what we're here for. If you'd like us to call you back then just let us know your number and the best time to reach you. Our CIS clients are due some of the largest refunds as the rules are different for self employed people. We're specialists in the construction industry and the Construction Industry Scheme and will handle your self assessment tax returns as well as your travel refunds.
If you want to check if you have a claim, click the button below and answer a few simple questions.
Can I claim?
If you're self-employed and paid through the Construction Industry Scheme (CIS), you're probably due a tax refund. You can also claim back a range of job-related expenses, including travel, meals, lodging, parking, tolls, tools, protective clothing, public liability insurance, phone bills, postage and stationery. We’ll assess all your expenses and include them if they qualify.
How does it work?
All self-employed people, including CIS workers, have to complete a tax return every year. The tax year ends on 5th April and you’ve got until 31st January the following year to send your tax return to HMRC.
At RIFT we complete your tax return for you, and claim your tax refund at the same time. Just tell us where you’ve worked, and when, and we’ll work out the cost of your travel. We’ll add any other job-related expenses you may have and fill in the tax forms for you, all you need to do is sign them. We’ll send the forms to HMRC, handle any questions on your behalf and chase them if they don’t pay out in the agreed timescale – it’s all part of our service. Your tax refund is sent to us and we send it straight to you, less our fee.
How quickly can I get my money?
How quickly do you want it? Once we've got all your information, it usually takes about four weeks to put your claim together. We send your claim to HMRC who will take another six to eight weeks on average to pay out.
Or you can upgrade to our RIFT Rapid Refund service, where we fast-track your claim and pay you within 24 hours of completing it. We then wait for HMRC to pay us. Terms and conditions apply.
Some of my mates would be interested in this. Should I tell them?
Of course. But call us first so we can give you your unique Refer and Earn number. Give the number to your mates and tell them to quote it when they call. We'll pay you £20 for each one that qualifies for a tax refund.
What if I owe money?
Ask us anyway – we can give you expert advice to help you decide whether to go ahead. There’s a chance we can reduce your debt and even get you a refund.
When do I need to get my tax return done by?
The simple answer is as soon as possible after the 5th April. We complete your tax return online and this has to be submitted before the 31st January the following year. To avoid expensive penalties from HMRC for late submissions, get your information into us as quickly as possible.
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