CIS Tax Refunds Explained: How Subcontractors in Thurrock Get Their Money Back
Your contractor deducts tax from every payment before you see it. For most subcontractors that means paying too much across the year, and the difference comes back as a refund once your return is filed. Here's how to make sure you get all of it.
Key takeaways
- Contractors deduct 20% (or 30% if unregistered) from your labour before you're paid.
- Tax is actually due on profit after expenses and your personal allowance, so most subcontractors overpay.
- The difference comes back as a refund once your Self Assessment return is filed.
- File from 6 April. Most refunds arrive within a few weeks when the paperwork is complete.
Why CIS subcontractors usually overpay
Under the Construction Industry Scheme, contractors deduct tax at source from your labour payments. That deduction is taken from your gross income before any allowances or expenses are considered.
Your actual tax bill is worked out on profit: income minus expenses, minus your £12,570 personal allowance. The gap between what was deducted and what you actually owe is your refund.
Gross CIS income £30,000, expenses £6,000. Taxable profit is £24,000. Income Tax on that after the personal allowance is roughly £2,300, plus around £700 Class 4 National Insurance, so about £3,000 due. But £6,000 was already deducted at 20%. Refund: around £3,000.
What you can claim as expenses
Every allowable expense reduces your profit and increases your refund. Common ones for subcontractors:
- Tools, equipment and PPE
- Van costs: fuel, insurance, repairs, road tax
- Or mileage at 45p/mile for the first 10,000 miles
- Travel and parking to sites
- Materials you buy and aren't reimbursed for
- Phone and a share of home costs for paperwork
- Public liability insurance
- Accountancy fees
- Training and CSCS card renewals
- Work clothing with a logo, and laundry
Receipts, statements or app records for all of it. HMRC can ask, and unsupported claims are the most common reason refunds get delayed.
What you need to file
- CIS statementsPayment and deduction statements from every contractor you worked for. Contractors must issue these monthly. Chase any that are missing.
- Bank statementsFor the full tax year, 6 April to 5 April.
- Expense recordsReceipts, mileage log, insurance and phone bills.
- Your UTR and NI numberYour Unique Taxpayer Reference is on HMRC letters and your online account.
Timing: when the refund arrives
The tax year ends on 5 April and you can file from 6 April. The earlier you file, the earlier the refund. Most land within two to four weeks when everything is in order, though HMRC does carry out extra checks on some claims. The final deadline is 31 January, but there's no reason to wait if you're owed money.
Mistakes that cost subcontractors money
| Mistake | What it costs you |
|---|---|
| Missing CIS statements | HMRC may not credit deductions you can't evidence |
| Not claiming mileage | Site-to-site travel adds up to hundreds a year |
| Mixing personal and business spending | Expenses become hard to prove, claims get trimmed |
| Still on 30% deductions | An extra 10% held back all year. Registering fixes it |
| Filing late | Penalties eat into the refund |
Frequently asked questions
Do I have to register for Self Assessment?
Yes. Even though tax has been deducted, you must file a return each year to declare income and claim the refund.
Can I claim for previous years I missed?
In many cases you can go back up to four tax years. Speak to an accountant before assuming a year is lost.
Does Making Tax Digital affect me?
If your gross income is over the MTD threshold, yes. See our guide to Making Tax Digital for Income Tax.
What if a contractor never gave me a statement?
Ask in writing first. If they won't provide it, HMRC can be contacted with the contractor's details and your payment records, but it slows things down, so chase early.
Get your CIS refund sorted
Send us your CIS statements and expenses and we'll file quickly and claim everything you're entitled to.