Stressed by tax?
Get Earnr Pro
September 8, 2022
September 8, 2022
Self employed

How can I get a CIS tax rebate?

Mo Halabi
Mo Halabi
If you’re a CIS worker, you’ll be probably entitled to receive a tax rebate. Here's how you can claim it.
Earnr is the finance and tax companion for the self-employed and side hustlers. We give you more time to run your business. Download Earnr for free on iOS.

If you’re a CIS worker, you’ll be probably entitled to receive a tax rebate after submitting your Self-Assessment tax return. This is because it’s very likely you overpaid your tax bill throughout the year.

The reason for this is that, under the CIS, HMRC requires construction companies to monthly deduct tax on behalf of their workers (subcontractors), specifically 20% for registered subcontractors and 30% for unregistered ones, as advance payments toward tax and National Insurance.

The good news is you can claim and get a tax rebate, here’s how…

How to claim a CIS tax return?

As a CIS worker, you’re considered as sole trader. This means that you run your own business as an individual, your personal and commercial incomes are considered one and the same.

As such, everything you need to do to claim a tax rebate is complete your Self-Assessment tax return, reporting as income the full amounts on your invoices and any deductions made by the contractor under the section “CIS deductions”. Once received, HMRC will calculate your tax and National Insurance, deducting any advanced payments made by the contractor. If what you already paid is too much, then HMRC will refund you.

The amount of money you’ll receive back mainly depends on your earnings and expenses. However, on average, construction workers claim back around £2000.

Read more about Self Assessment here

How can I make this whole process easier?

HMRC doesn't make things very easy to understand, especially if you're busy enough with work and social life! Using an app like Earnr can make it easier to stay on top of your income and tax return before the deadline.

Learn more and download Earnr here.

Blog Home

Related blog posts

decorative image of a blog

What is IR35 and do I need to worry about it?

There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.

Read more
decorative image of a blog

Flat rates for mileage vs actual expenses. What is better?

Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.

Read more
decorative image of a blog

What is the EIS and how does it work?

If you are looking to invest in small and medium sized businesses, the Enterprise Investment Scheme (EIS) provides lots of tax reliefs for doing so. Here we discuss what it is and how it works.

Read more
Earnr logoDownload earnr