CIS Tax Refunds in Kent

Why so many subcontractors are owed money

When you work under CIS, the contractor usually takes 20% from the labour part of each payment, or 30% if you are not registered. Those deductions are advance payments towards your tax and National Insurance, but they are worked out on your gross labour charge. They take no account of your personal allowance, the cost of tools, van and fuel, protective clothing or other business expenses.

That means your deductions can easily exceed your final tax bill. The difference is not paid back automatically. You need to file an accurate return showing your income, expenses and the CIS deductions taken, and only then can the overpayment be repaid. Our CIS tax return service helps construction subcontractors organise their financial records, calculate their taxable profit and claim any refund they are eligible to receive.

How we can help

• Prepare your annual Self Assessment tax return, including any other income such as employment or rental profits.
• Reconcile CIS deductions against contractor statements, chasing missing statements and checking the totals match what HMRC holds.
• Review allowable business expenses so you claim what the rules allow, from tools and materials to mileage and phone costs, and nothing you cannot support.
• Calculate your tax liability and any refund due, including Class 4 National Insurance.
• Assist with HMRC correspondence where needed, for example if HMRC asks for proof of deductions before releasing a repayment.

Sole traders, partners and limited companies

If you are a sole trader or in a partnership, CIS deductions are claimed through your Self Assessment tax return. It is usually best to file as soon as you can after the tax year ends on 5 April, rather than waiting for the January deadline, so any repayment arrives sooner.

Limited company subcontractors work differently. The company sets its CIS deductions against the PAYE and National Insurance it owes by entering them on its Employer Payment Summary through payroll. If deductions are left over after the tax year, the company can claim a refund. We make sure the figures are recorded each month, rather than discovering at year end that nothing has been offset. HMRC explains both routes in its guidance on claiming back CIS deductions.

Who this service is for

Builders, electricians, plumbers, carpenters, decorators, roofers, groundworkers, plasterers and other construction subcontractors, whether you work for one main contractor or many. It suits people in their first year under CIS as well as those with several years of returns to catch up on.

What to send us

Your UTR, all payment and deduction statements for the tax year, bank statements, and receipts or records of your expenses. If statements are missing, give us the contractor names and we will work through it with you. If you would rather stay on top of things through the year, our bookkeeping service keeps records ready for the return.

Local help for Kent trades

We act for subcontractors on sites all over Kent, from Dartford to Folkestone. Send us a message with the tax years you want to look at and we will tell you what we need to work out whether a refund is due. We never promise a refund before the figures are done.