How to Claim a CIS Tax Refund in the UK
If you’re a subcontractor working under the Construction Industry Scheme (CIS), there’s a strong chance you could be owed money back from the government.
Many subcontractors have tax deducted at source throughout the year—often more than they actually owe. The result? You may be entitled to a CIS tax refund from HM Revenue & Customs.
In this guide, we’ll explain how to claim a CIS tax refund, who qualifies, and how Akount can help you maximise your refund quickly and efficiently.
What Is a CIS Tax Refund?
Under the Construction Industry Scheme (CIS), contractors deduct tax from subcontractors’ payments and send it to HM Revenue & Customs.
These deductions are:
However, these deductions don’t take into account your actual expenses or tax allowances, meaning you may have overpaid.
Why Do CIS Tax Refunds Happen?
CIS refunds are common because the system applies flat deduction rates, regardless of your actual profit.
Common Reasons for Overpayment
Many subcontractors are owed refunds but never claim them.
Who Can Claim a CIS Tax Refund?
You may be eligible for a refund if you:
Even if you’re unsure, it’s worth checking, many subcontractors are surprised by how much they can reclaim.
How to Claim a CIS Tax Refund
To claim your refund, you need to submit a Self-Assessment tax return to HM Revenue & Customs.
Register for Self-Assessment
If you’re not already registered, you must sign up with HM Revenue & Customs.
Gather Your Records
You’ll need:
Calculate Your Income and Expenses
Work out:
This determines how much tax you actually owe.
Submit Your Tax Return
Submit your Self-Assessment tax return online.
Receive Your Refund
If you’ve overpaid, HM Revenue & Customs will issue your refund directly to your bank account.
How Much CIS Tax Refund Can You Get?
The amount varies depending on your situation.
Example
Total income: £40,000
CIS deductions: £8,000
Expenses: £10,000
Taxable profit: £30,000
Actual tax owed: lower than £8,000 → refund due
Some subcontractors receive refunds ranging from hundreds to several thousand pounds.
What Expenses Can Increase Your Refund?
The more allowable expenses you claim, the lower your taxable profit and the higher your refund.
Common Allowable Expenses
Many subcontractors miss expenses, reducing their refund unnecessarily.
How Long Does It Take to Get a CIS Refund?
Once your tax return is submitted:
Accurate submissions help avoid delays.
Common Mistakes When Claiming a CIS Refund
Avoid these common errors:
These mistakes can delay your refund or reduce the amount you receive.
Do You Need to Claim Every Year?
Yes, if you work under CIS, you must submit a tax return every year, even if you expect a refund.
Regular submissions ensure you reclaim any overpaid tax consistently.
Can You Claim CIS Refunds for Previous Years?
Yes, you can usually claim refunds for the last 4 tax years, depending on your circumstances.
This can result in a significant lump sum if you haven’t claimed before.
How Akount Can Help You Maximise Your CIS Tax Refund
Claiming a CIS tax refund can be complicated, but getting it right can put thousands back in your pocket.
Akount provides expert CIS accounting services to ensure you get the maximum refund you’re entitled to.
Full CIS Refund Service
We handle the entire process from start to finish.
Expense Optimisation
We identify all allowable expenses to maximise your refund.
Accurate Tax Returns
We prepare and submit your Self-Assessment tax return to HM Revenue & Customs.
Fast Processing
We ensure everything is submitted correctly to avoid delays.
Ongoing Support
We help you:
Why Use an Accountant for Your CIS Refund?
While you can claim a refund yourself, working with an accountant offers major benefits:
Many subcontractors who file themselves miss out on money they’re entitled to.
Final Thoughts
If you’re working under CIS, there’s a strong chance you’ve overpaid tax—and could be owed a refund.
By understanding the process and claiming correctly, you can:
Claim Your CIS Tax Refund with Akount
Don’t leave money sitting with the taxman.
Akount makes claiming your CIS tax refund simple, fast and hassle-free.
Contact Akount today and find out how much you could be owed.