How do I reclaim CIS deducted?

If you operate within the Construction Industry Scheme and have tax deducted from you at source, you may be entitled to a tax refund, so how do you go about reclaiming it?

CIS refunds if you are self employed

The way to reclaim CIS deducted if you are self employed is through your self assessment tax return. When you complete your return at the end of the year, and your tax liability is lower than the amount you owe, you will be sent your refund within a few weeks of submitting your return. This can be paid directly into your bank or account, offset against future tax bills or sent as a cheque.

Claiming CIS back if you are a limited company

Where your company is paid for work done under the CIS scheme you should offset the deductions made during the tax year, against your monthly liabilities for PAYE and CIS taken from your own subcontractors. You then account for your own liabilities on the monthly Employer Payment Summary (EPS).

If you are due a repayment at the end of the year, you need to make a request in writing to HMRC once you have submitted your final Full Payment Submission (FPS) and final EPS for the tax year.

If you would like some more information, or are in the construction industry and want help with your accounts and tax, please get in touch