CIS for Subcontractors: How It Works & How to Get Your HMRC Refund

If you’re a self-employed subcontractor in construction, you’ve probably had money taken off your payments under CIS (Construction Industry Scheme). This isn’t “lost” money, it’s usually tax paid in advance to HMRC.

How CIS works

When a contractor pays you, they normally deduct:

• 20% if you’re CIS registered

• 30% if you’re not registered(Some subcontractors can qualify for 0% (Gross Payment Status).)

These deductions count towards your Income Tax and National Insurance for the tax year.

How to claim your CIS refund

Most CIS refunds are claimed through your Self Assessment:

1. Collect your CIS statements from each contractor (proof of deductions)

2. Add up your income and expenses for the tax year

3. File your Self Assessment tax return and enter your CIS deductions

4. HMRC offsets the CIS tax already paid, if you overpaid, they refund the difference

   
   

Why you might get money back

You often get a refund if:

• your profit is lower than expected (quiet periods, part-year work)

• you have significant allowable expenses

• you paid CIS at 20%/30% but your final tax bill is lower

  
  

Need help?

TaxHub can help you register for CIS, reconcile CIS statements, and file your return correctly so you get your refund as fast as possible.