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If you work as a construction subcontractor and have had CIS deductions taken from your payments, you may have paid more tax than you owe. We review your CIS deductions and tax position, then handle the correct claim through the right process.
CIS deductions are advance payments towards your tax and National Insurance — they don’t automatically mean a refund. We’ll review your position and tell you where you actually stand.
–THE BASICS
The Construction Industry Scheme (CIS) is HMRC’s system for handling tax on construction work. Under it, contractors deduct money from the payments they make to subcontractors and pass it straight to HMRC on the subcontractor’s behalf.
Those deductions aren’t an extra tax. They’re advance payments towards the subcontractor’s Income Tax and National Insurance for the year. Because they’re usually taken from your labour before any expenses are accounted for, subcontractors often end up having paid more during the year than their final tax bill works out to — which is where a review of your position matters.
Self-employed subcontractors, sole traders and limited-company subcontractors in construction who have had CIS deductions taken from their payments and want their tax position handled correctly.
The rate a contractor deducts depends on your status with HMRC. Deductions are taken from the labour part of your payment — genuine materials costs shown separately are excluded.
20%
REGISTERED
The standard rate, applied once you're registered for CIS and verified by the contractor. Where most subcontractors sit.
30%
UNREGISTERED
The higher rate, applied when you're not registered for CIS or the contractor can't verify you with HMRC.
0%
GROSS STATUS
Qualifying payments are made in full with no deduction. You then account for your tax through your usual returns. Gross status has to be applied for and meets HMRC's turnover and compliance tests.
Registering for CIS as a subcontractor lowers your deduction rate from 30% to 20% — there’s no cost to register, so it’s usually worth doing if you’re eligible.
---THIS PART MATTERS
This is where subcontractors most often go wrong. The way CIS deductions are claimed back is completely different for a sole trader than for a limited company — and using the wrong method causes delays or problems with HMRC.
If you're a sole trader or in a partnership, your CIS deductions are accounted for on your Self Assessment tax return. The deductions already taken are set against your total tax and National Insurance for the year.
If you subcontract through a limited company, the process is different. CIS deductions your company suffers are reclaimed through your company's payroll scheme using the Employer Payment Summary (EPS) — set against your PAYE and National Insurance liabilities.
⚠ HMRC’s guidance is explicit that a company should not try to reclaim CIS deductions through its Corporation Tax return — doing so can lead to a penalty. This is one of the most common limited-company mistakes.
The exact records depend on whether you're a sole trader, partnership or limited company, but these are the ones that usually matter.
It’s common not to have every Payment and Deduction Statement to hand. If some are missing, there are other records that can help evidence what was deducted — such as your own invoices and bank statements showing the payments received. We can talk through what you have and work out the best way forward rather than you having to track everything down first.
Most CIS problems come down to records, structure and timing rather than anything complicated.
A clear process, with the right method applied for your business structure.
We look at your situation, your business structure, and the deductions you've had taken.
We help you pull together your statements, income and expense records for the period.
We work out your actual tax position, taking account of your income, deductions and allowable expenses.
We confirm whether a repayment may be due and the correct route for your structure.
We prepare the relevant Self Assessment return or company claim accurately.
We submit and handle the process with HMRC through to the outcome.
We work with subcontractors across the construction trades whose work falls under CIS.
Not every job in these trades automatically falls under CIS — it depends on the work and the arrangement. If you’re not sure whether CIS applies to you, that’s exactly the kind of thing we can check.
No. CIS deductions are advance payments towards your Income Tax and National Insurance, not an automatic refund. Whether a repayment is due depends on your total income, allowable expenses and final tax position for the year. Some subcontractors are due a repayment; others aren’t.
As a sole trader, your CIS deductions are accounted for through your Self Assessment tax return. The deductions already taken are set against your total tax and National Insurance for the year, and if you’ve overpaid, a repayment may be due.
A limited company reclaims CIS deductions through its payroll scheme, reporting the deductions suffered on its monthly Employer Payment Summary (EPS) so they’re offset against PAYE and National Insurance. HMRC’s guidance is clear that a company should not try to reclaim CIS through its Corporation Tax return.
20% is the standard CIS deduction rate for subcontractors who are registered for CIS and verified by the contractor. It’s taken from the labour part of your payment and treated as an advance payment towards your tax.
It’s common not to have every Payment and Deduction Statement. Other records — such as your own invoices and bank statements showing the payments you received — can help evidence what was deducted. We can talk through what you have and the best way forward.
No, but they’re connected for sole traders. CIS is the deduction scheme contractors use when paying you. Self Assessment is how a sole trader or partner reports income and accounts for those CIS deductions against their tax for the year. Limited companies deal with CIS differently, through PAYE.
Tell us a bit about your work and how you're set up, and we'll review your CIS position and explain where you stand — no assumptions about a refund until we've looked at the figures.
