If you're working in construction as a subcontractor, you've probably noticed money being taken out of your pay before you even see it. That's the Construction Industry Scheme (CIS) in action. The good news? You might be owed money back from HMRC – and getting professional help can mean the difference between a small refund and a substantial one.
Let's break down how CIS works, why you might be due a refund, and how accountancy professionals can help you claim every penny you're entitled to.
1. What Is CIS and Why Does It Affect Your Pay?
CIS is HMRC's way of collecting tax from construction workers upfront. Instead of waiting until the end of the tax year, contractors take money out of your payments and send it straight to HMRC on your behalf.
Here's how it works:
- If you're registered with CIS: 20% comes off your labour costs
- If you're not registered: 30% comes off your labour costs
- Materials are paid in full (no deductions)
Think of it like this – HMRC is getting an advance payment of your tax bill. But here's the key point: this isn't your final tax bill. It's just HMRC holding onto money until they work out exactly how much tax you actually owe.
2. Why You Might Be Due Money Back
The CIS deductions are often more than your actual tax bill. This happens more often than you'd think, especially if:
- Your total income for the year is lower than expected
- You have business expenses that reduce your taxable profit
- You're entitled to personal allowances
- You worked fewer weeks than normal
- You had periods of unemployment or sickness
Example: Let's say you earned £30,000 gross in a year. CIS took £6,000 (20%). But when your accountant works out your actual tax bill, it might only be £4,500. That means HMRC owes you £1,500 back.
3. The Biggest Mistakes That Cost You Money
Mistake 1: Not Claiming All Your Business Expenses
Many construction workers miss out on hundreds or thousands in refunds because they don't track expenses properly. You can claim for:
- Tools and equipment
- Work clothing and safety gear
- Van costs (fuel, insurance, repairs)
- Phone bills (business portion)
- Training courses
- Accommodation when working away
Tip: Keep every receipt. Even small expenses add up over a year.
Mistake 2: Mixing Up Gross and Net Payments
Always record your gross payments (before CIS deductions) on your Self Assessment. If you only declare what you received, you'll miss out on getting credit for the tax already paid.
Mistake 3: Not Registering with CIS
If you're not registered, you lose 30% instead of 20%. That's an extra £100 on every £1,000 you earn. Registration is free and can be done online.
4. How Professional Accountants Maximize Your Refund
Experience Spots What You Miss
A good accountant knows exactly what construction workers can claim. They've seen it all before – from specialist tools to travel expenses between sites. Professional accountants typically find £2,000-£5,000 more in expenses than people filing their own returns.
They Know the Rules Inside Out
CIS rules are complicated. For example:
- Materials must be recorded separately from labour
- Some mixed contracts need special treatment
- Travel between sites can be claimed, but travel from home usually can't
- Accommodation rules vary depending on contract length
Proper Record Keeping Systems
Professional accountants set up systems that capture every claimable expense. They'll show you:
- What receipts to keep
- How to track mileage properly
- Which expenses qualify
- How to separate business and personal costs
5. Why CIS Assist's Experience Gets You More Money
We Specialize in Construction
Unlike general accountants, CIS Assist deals with construction workers every day. We understand:
- The specific expenses construction workers have
- How different contracts affect your tax position
- The best ways to structure your business for tax efficiency
- Common HMRC queries and how to handle them
Track Record of Higher Refunds
Our clients typically receive 30-40% higher refunds compared to DIY submissions. Here's why:
- Detailed Expense Reviews: We go through every possible expense category
- Professional Software: Our systems catch deductions others miss
- HMRC Relationships: We know how to present claims for quick processing
- Error Prevention: Mistakes delay refunds – we get it right first time
Transparent Process
You'll know exactly:
- What expenses we're claiming
- How much refund to expect
- When you'll receive your money
- What our fees are upfront
6. The Real Cost of Getting It Wrong
Missing expenses isn't just about this year's refund. If you don't claim properly:
- You pay more tax than necessary every year
- You miss out on compound savings over time
- HMRC might question future claims if they spot inconsistencies
- You could face penalties if your records aren't up to standard
Example: A plasterer missing £3,000 in expenses pays an extra £600 in tax. Over 10 years, that's £6,000 – enough for a decent van or holiday.
7. What Makes the Difference in Professional Service
Speed Matters
Professional submissions typically get processed 2-3 times faster. While DIY returns often get queried by HMRC, professional submissions are usually accepted straight away because:
- All documentation is properly formatted
- Claims are reasonable and well-supported
- Common errors are avoided
- Communication with HMRC is professional
Ongoing Support
A good accountant doesn't just file your return and disappear. They:
- Answer questions throughout the year
- Help with VAT if your business grows
- Provide advice on tax planning
- Handle any HMRC correspondence
Peace of Mind
Knowing your return is correct removes stress. You can focus on your work instead of worrying about tax deadlines, HMRC letters, or whether you've missed something important.
Getting Your Maximum Refund Back
The Construction Industry Scheme doesn't have to be complicated. With proper professional help, most construction workers are due substantial refunds – often much more than they realize.
The key is working with specialists who understand construction, track every possible expense, and have the experience to maximize your refund quickly and efficiently.
Ready to see how much HMRC owes you? At CIS Assist, we specialize in getting construction workers the maximum refund they're entitled to. Our expert team knows exactly what you can claim and how to present it to HMRC for the fastest possible processing.
Contact us today for a free consultation and discover how our professional service can put more money back in your pocket. Don't let another year go by leaving money on the table – your refund is waiting.
