Construction Industry Scheme - What can I claim on my CIS tax return?
If you’re self-employed and agree to do construction work for a contractor, you’re a CIS subcontractor. You should register with CIS.
CIS Tax Return Services & CIS Refunds
As a subcontractor, you must be both registered as self-employed and CIS registered. You will have to submit the usual self-assessment tax return in addition to supplying information relating to your CIS tax obligations.
As a subcontractor in the Construction industry, any contractor for whom you perform work is required to deduct money from your payments and pass it straight to HMRC. If you are a registered subcontractor, 20% is taken from your fee (and should be stated on your invoice). If you are unregistered, the contractor for whom you work will be required to deduct 30%.
The good news is that this often results in subcontractors being eligible for a CIS tax refund from HMRC at the end of each financial year. However, the practicalities of claiming this refund can be complicated. That’s why TAC offers a CIS Refunds service specifically designed to help subcontractors to claim back the correct money they are owed.
In order to receive gross income from a contractor, a subcontractor must pass three tests:
- Business Test – proving the business is considered construction work (for example, site preparation, demolition or decorating).
- Turnover Test – £30,000 for sole traders, £30,000 for each partner in a partnership, or, at least, £100,000 for the whole partnership.
- Compliance Test – taxation and documentation must be in order, and payments have to be on time.
What can you claim on your CIS tax return?
- Business travel expenses include the cost of public transportation, as well as the cost of your motorcycle, van, or car.
- Equipment and tools – as well as any protective clothing.
- Accommodation and subsistence – particularly if you are required to stay away from home.
- Home usage, including Mobile phone bills.
- Fees for professional services – such as insurance, an accountant’s fee, and bank charges.
How The Accounting Company Can Help With Your CIS Return and Refunds?
At TAC, we are highly experienced accountants and bookkeepers in all areas of the Construction industry and the intricacies of its unique tax rules. We work with many subcontractors on ensuring they get the full benefit of their CIS status, helping our clients achieve the refunds to which they are entitled and getting their returns submitted in a correct and timely manner.
We will assess your figures and paperwork and liaise with HMRC on your behalf. This alleviates any stress on you, particularly if you find the task of calculating your tax difficult or time-consuming.
Get in touch with one of our friendly, expert advisors for a complimentary chat about your CIS tax returns and claiming the CIS refund you are entitled to.
We are available to help you with all aspects of your CIS Account Preperation & Refunds
Call Us Now 0113 240 3227
Please Feel Free To Contact Us.
For more information on how we can help your business please use the enquiry form below to email. Or call one of our friendly team today.
Call: (0113) 240 3227
Get a Callback
What Our Clients Say
" We have been a client of The Accounting Company Leeds Ltd since the formation of our company 7 years ago. We are extremely satisfied with their services from bookkeeping to management accounts, VAT returns, Year End as well as looking after the more complex issues involving corporate financial accounting. The staff members are always available to help in a timely and professional manner. "
" We have worked with The Accounting Company for many years. They provide us with complete book-keeping, VAT returns, Payroll, Corporation Tax and assist us with all compliance work for our company. We have found the team at The Accounting Company will always go the extra mile to help us with our business needs. We have no hesitation in recommending them. "
" I have been a client with The Accounting Company for several years. During this time I have found them to be exceptional in their friendliness, professionalism and work ethics. They are down to earth, patient, punctual and l look forward to many more years in their capable hands. I would recommend them to anyone seeking accountancy work. Thank you to all the Team. "
" I have worked with The Accounting Company Leeds for many years and have found them to be extremely helpful in all aspects of my business and personal financial requirements. In addition, they are extremely well informed and helpful, which is why I would not hesitate to recommend their services. "
" Nazreen and her team have provided an exceptional service for many years and I am very happy to recommend them for their expertise and efficiency. "
Ismail Egieya – Kiecom Limited
" I just wanted to say what excellent accountants you and your team are. You do the annual accounts, payroll, VAT and other TAX returns for my company excellently and make it look so easy and stress-free. "