If you work as a subcontractor in the UK construction industry, there is a good chance HMRC has taken more tax from your pay than you actually owe. The Construction Industry Scheme deducts 20% from most registered subcontractors, and 30% if you are not registered. Because these deductions do not account for your expenses, allowances or personal circumstances, many subcontractors are entitled to a CIS tax rebate at the end of the tax year.
At R&R Chartered Certified Accountants, we help subcontractors across Lancashire and the North West claim back what they are owed. This guide explains how CIS rebates work, what you can claim, and the simplest way to get your money back.
What Is a CIS Tax Rebate?
A CIS tax rebate is a refund from HMRC when the tax deducted from your construction payments is more than your final income tax and National Insurance liability. The rebate is calculated when you file your annual self assessment tax return.
For example, if a subcontractor earns £30,000 in labour payments and has 20% deducted under CIS, HMRC receives £6,000 during the year. After deducting the personal allowance and allowable expenses, the actual tax bill might only be £2,500. The difference, in this simplified example, would be refunded as a rebate.
Who Can Claim a CIS Rebate?
You can claim a CIS rebate if:
- You worked as a subcontractor under the Construction Industry Scheme during the tax year.
- Tax was deducted from your payments by contractors.
- You have overpaid tax once your income, expenses and allowances are taken into account.
Most subcontractors who work regularly under CIS are due some money back, especially if they have significant travel, tools or home office costs.
What Can You Claim Against CIS Income?
Allowable expenses reduce your taxable profit and increase your rebate. Common claims include:
- Business mileage and fuel for travelling between sites.
- Tools, safety equipment and protective clothing.
- Materials purchased for jobs.
- A proportion of phone, broadband and home office costs.
- Professional subscriptions and training.
- Accountancy fees for preparing your tax return.
Good record keeping is essential. HMRC may ask to see receipts, invoices, bank statements and mileage logs.
How to Claim Your CIS Rebate
The claim is made through your self assessment tax return. The steps are:
- Gather all your CIS payment and deduction statements from contractors.
- Collect receipts and records for all allowable expenses.
- Complete your self assessment tax return, entering your CIS deductions in the correct section.
- Submit the return online before the 31 January deadline.
- Wait for HMRC to process the return and issue the refund, usually within four to eight weeks.
A CIS accountant can handle the entire process, check that nothing is missed and often speed up the rebate.
How Long Does a CIS Rebate Take?
HMRC normally pays CIS rebates within four to eight weeks of receiving a tax return. Delays can happen if HMRC asks for additional evidence, if there are discrepancies in your CIS statements, or during busy periods such as January and April.
Filing early, keeping clear records and making sure your figures match HMRC’s records all help avoid delays.
Refunds are processed through your Self Assessment return, and HMRC explains repayment timescales in its Self Assessment guidance on GOV.UK. You can also check what you owe or are owed in your HMRC personal tax account.
Frequently Asked Questions
It depends on your total income, deductions, expenses and tax allowances. A typical subcontractor can receive anything from a few hundred to several thousand pounds.
Yes. Your self assessment return covers all your income, including employment and self-employment. CIS deductions are still refundable if you have overpaid overall.
You can request copies from your contractors or check your HMRC online account, which should show the deductions reported. An accountant can also help reconcile missing statements.
You can file the return yourself, but an accountant usually increases the rebate by claiming expenses you might miss and reduces the risk of HMRC enquiries.
You claim the rebate through your self assessment tax return, which is due by 31 January following the end of the tax year. The sooner you file, the sooner HMRC pays.
Yes, if you missed a year. You can usually amend a tax return within one year of the original filing deadline, or file a late return for earlier years if needed.
Final Thoughts
CIS tax rebates are one of the main financial benefits of staying organised as a subcontractor. If tax has been deducted from your construction pay, you are almost certainly owed money back. The key is to file an accurate self assessment return that includes every allowable expense.
If you want help claiming your CIS rebate, contact R&R Chartered Certified Accountants for a free review. We will check your CIS statements, identify your allowable expenses and make sure you receive the maximum rebate as quickly as possible.
This article is general guidance for UK businesses and individuals and does not constitute personal financial or tax advice. Rules, thresholds and individual circumstances vary — always confirm your specific position with a qualified accountant before acting.
Rehan Razzaq, FCCA
Founder, R&R Chartered Certified Accountants
ACCA Chartered Certified and Xero Certified Advisor, helping UK small businesses and subcontractors with accounts, tax and financial planning since 2021.
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