Subcontractors working under the Construction Industry Scheme (CIS) often end up paying more tax than they owe. This happens because the upfront CIS deductions are calculated at a set rate, without accounting for any expenses incurred throughout the year.   When relevant costs—such as tools, safety equipment, fuel, and travel between sites—are considered, the actual tax liability is usually lower, which could even qualify the subcontractor for a refund. This guide aims to provide a comprehensive overview of how subcontractors can claim CIS refunds, identify eligibility criteria, outline claimable expenses, and ensure that tax returns are submitted accurately in compliance with HMRC regulations.   What Is a CIS Tax Refund?  This amount is refunded by HMRC when the tax deducted at source exceeds your actual liability. Subcontractors registered under CIS usually have 20% withheld, while unverified subcontractors may face a 30% deduction. Because these deductions happen before accounting for business expenses, many subcontractors end up overpaying their taxes.  After you submit your self-assessment, HMRC will review your return and determine your actual tax liability. If the CIS deductions made during the year are more than what you owe, the surplus will be refunded to you.  Allowable Expenses for CIS Subcontractors  HMRC allows a wide range of business expenses to be claimed against your income. These reduce your taxable profit and help determine the refund you are entitled to receive.  Tools and Equipment  These are allowable if they are wholly and exclusively for your work:  Protective Clothing (PPE)  HMRC allows the cost of protective and specialist clothing required for your work, such as:  Travel Between Sites  You may claim the cost of travel between sites or temporary workplaces, including:  Use of Home for Business  If you carry out administrative tasks at home, you can claim a reasonable proportion of household running costs that relate to business use, including:  Insurance and Professional Fees  Allowable costs include:  Materials and Consumables  These are allowable when purchased for work and not reimbursed by the contractor, such as:  Proper record-keeping is crucial. Receipts, mileage logs, and invoices provide evidence to support your claims if HMRC requests documentation.  How to Claim a CIS Tax Refund  Most CIS (Construction Industry Scheme) workers reclaim overpaid tax through self-assessment. To do this, you should gather your CIS statements, record all the income you received, and collect evidence of your allowable expenses. Complete your self-assessment return by declaring your income, CIS deductions, expenses, and any personal allowances. Once you have submitted your return to HMRC, they will process it and verify it against contractor records. If everything checks out, HMRC will issue any refunds directly to your bank account.  CIS Refunds and Making Tax Digital (MTD)  The implementation of Making Tax Digital (MTD) for Income Tax will soon affect subcontractors, who will be required to retain digital records and submit quarterly reports.  Key Dates  It is recommended to commence the digitalisation of receipts, mileage logs, and CIS statements presently, as this measure will facilitate a smoother transition to quarterly reporting following the implementation of the new regulations.  Why Subcontractors Use an Accountant  While completing your return yourself is possible, many subcontractors opt for professional support to ensure:  How Does The Infinity Group Help? At The Infinity Group, we assist subcontractors at every stage, ensuring that your tax returns are accurate, comprehensive, and reflect all allowable business expenses. We handle all tasks meticulously and efficiently, enabling you to focus on your work while confidently relying on the full compliance of your tax affairs.  Practical Tips for a Smooth Refund  Frequently Asked Questions  Can I claim mileage if I use my own vehicle?  Yes—travel between job sites is allowable, but travel from home to your first job is not.  Can I claim a refund if I worked under both CIS and non-CIS jobs?  All income is reported on your tax return, and CIS deductions are incorporated into the overall tax calculation. Your refund depends on your total earnings and allowable expenses.  How do I prepare for MTD?  Begin storing your receipts in a digital format and keep accurate mileage logs and CIS statements to make upcoming quarterly submissions easier once the new regulations come into effect.  Subscribe to Our Newsletter for Weekly Updates!