If you work in the construction industry as a subcontractor, there’s a good chance you’re due a tax refund under the Construction Industry Scheme (CIS). Yet every year, thousands of subcontractors either delay their returns or miss out on repayments they’re entitled to — simply because they don’t fully understand the process.

Here’s what you need to know about CIS tax returns, why acting early matters, and how to make sure you’re getting back what’s rightfully yours.

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What is the CIS?

The Construction Industry Scheme (CIS) is an HMRC scheme that requires contractors to deduct money from subcontractors’ payments and pass it to HMRC. These deductions count as advance payments toward the subcontractor’s tax and National Insurance.

As a subcontractor, you’ll often be taxed at 20% (or 30% if you’re not registered) before you even see your money. But at the end of the tax year, you may find that you’ve overpaid — and that means you could be due a tax refund.

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Who Can Claim a CIS Refund?

If you’re:

• Registered as a self-employed subcontractor
• Paid under CIS
• Have had tax deducted at source

…then you may be owed a refund. You might also be able to claim for:

• Work-related expenses (tools, materials, travel, PPE)
• Use of home for admin or office work
• Mileage and vehicle costs

The average CIS refund can range from £1,000 to £3,000, depending on your individual circumstances.

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Why Timing Matters

The tax year ends on 5 April, and you can submit your CIS tax return from 6 April onward. The earlier you submit it, the sooner you’ll receive your refund — often within 1–2 weeks if there are no complications.

At AXT Accountants, we help clients in the construction sector submit their returns promptly and accurately — ensuring all allowable expenses are claimed and refunds are maximised.

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Common Mistakes to Avoid

• Delaying your return – waiting months after the deadline can leave you out of pocket
• Not keeping records – lack of receipts or mileage logs can limit your claim
• Incorrect figures – even small mistakes can delay refunds or trigger HMRC checks

We offer support to ensure everything is submitted correctly and on time.

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