What is CIS?
CIS Tax is deducted from subcontractors in the construction industry to ensure that income tax & national insurance deductions are collected.
The rate at which a subcontractor is taxed is dependent on whether they are registered with HMRC. Subcontractors do not need to be registered, if they are not registered they will be taxed at a higher rate.
Refunds, if due, may be claimed back after the 5th April each year.
For CIS, construction work includes:
- preparing the site, e.g. laying foundations, and providing access works
- demolition and dismantling
- building work
- alterations, repairs and decorating
- installing systems for heating, lighting, power, water and ventilation
- cleaning the inside of buildings after construction work
You don’t have to register if you only do certain jobs, including:
- architecture and surveying
- scaffolding hire (with no labour)
- carpet fitting
- making materials used in construction including plant and machinery
- delivering materials
- work on construction sites that’s clearly not construction, eg running a canteen or site facilities
FAQ
How much can I claim back?
The amount you can claim back depends on the difference between what you owe in National Insurance & Income Tax & the amount you have paid in CIS Tax.
How long will it take to claim?
This usually depends on how much paperwork that needs to be processed and the time it takes for HMRC to process the claim. Therefore, it can take anywhere from 3 to 6 weeks for the claim to be processed.
How is the repayment paid back to me?
The repayment is usually paid back into your bank account or HMRC may send you a cheque.
Here at James Bell & Co we offer expert advice and services to help you claim back CIS tax for yourself or a business. For more information on how we can help you please feel free to contact us.
