Claiming Your CIS Tax Refund

Step 1: Check Eligibility

Make sure you have worked under the Construction Industry Scheme (CIS).

Step 2: Gather Documents

Collect all relevant paperwork, including payslips and your UTR.

Step 3: Fill Out Forms

Complete the necessary tax return form accurately.

Step 4: Submit Your Claim

Send your filled form and documents to HMRC promptly.

What is CIS?

The Construction Industry Scheme (CIS) requires contractors to deduct money from payments to subcontractors and pass it to HMRC. This acts as an advance payment toward the subcontractor’s tax and National Insurance.

CIS Refund Process – Based on Business Type

For Self-Employed Subcontractors (Sole Traders or Partnerships)

Steps:

  1. Keep records of all CIS deduction statements received from contractors.
  2. At the end of the tax year (5 April), complete and submit your Self Assessment tax return.
  3. HMRC will calculate how much tax you owe.
  4. If you’ve overpaid through CIS deductions, you’ll receive a refund.

Refund Time:

  • Typically issued within 2 to 4 weeks after submitting your tax return (online returns are faster).

For Limited Companies (Using PAYE Payroll System)

Steps:

  1. Record all CIS deductions made by contractors throughout the tax year.
  2. Submit regular Full Payment Submissions (FPS) through payroll software.
  3. Submit Employer Payment Summary (EPS) each month showing CIS deductions suffered.
  4. Offset the deductions against your PAYE liabilities (income tax, NIC, etc.).
  5. If you’ve overpaid, you can claim a refund from HMRC after the tax year ends (5 April).

How to Claim:

  • Submit a CIS repayment request via the HMRC online form or through your company’s tax agent/accountant.

Refund Time:

  • Can take up to 40 working days after 5 April each year.

What You Need to Prepare?

  • Unique Taxpayer Reference (UTR)
  • National Insurance Number
  • CIS deduction statements
  • Company PAYE reference (for limited companies)
  • Bank account details for the refund