What Is A CIS Tax Refund And How To Get Yours

CIS Tax Refunds And How To Get Yours

The Construction Industry Scheme, or CIS, is a tax deduction scheme involving contractors and subcontractors from the construction industry. Under CIS, a contractor will deduct money from a subcontractor’s pay and send it straight to HMRC. The money is considered as an ‘advance payment towards the subcontractor’s tax. However, many people pay more tax than what they owed and will therefore be due an income tax refund.

For Example, many people get an HMRC tax refund after paying for expenses that HMRC allows you to deduct from your taxes. Others pay more than they owe without paying much attention to it, just to be on the safe side and not underpay.

We are dedicated to winning you an Income Tax Refund while delivering industry-leading customer support.

Tax refunds can be confusing. Here at Tax Refund Calculator we have created a breakdown of information about your HMRC Tax Refund. Claim back what you are owed today.

What can Lead To Overpayments Of Tax? 

There are numerous circumstances which can lead to overpayment of taxes. Here are a few:

• Improper Withholdings

If you don’t adjust your payment withholdings to accurately reflect your tax situation, you might have more withholdings than you actually owe. All sorts of things can affect the taxes you owe, such as a change in earnings, changing job, getting married, or having a child.

• Overestimating Your Quarterly Taxes

If you are self-employed, you estimate your annual taxes owed for the year and make tax payments quarterly. Estimating these with complete accuracy is nearly impossible unless you use an accountant. Even then, most self-employed people pay more in taxes than they think they will owe to be safe. Our tax refund calculator can help you work out if you have overpaid.

This means they are often owed an HMRC tax refund.

• Paying Unnecessary National Insurance

Your employer might mistakenly withhold contributions for National Insurance, even if you’ve reached the age where you no longer have to. This would lead to overpayments, resulting in an HMRC Tax refund.

• Tax Return Errors

Errors made on your Tax return can cause you to overpay. Another error that results in overpayment is failing to account for allowable tax credits and deductions. This is especially common among self-employed people.

• An Incorrect or Emergency Tax Code

If HMRC assigns you the wrong tax code you’ll pay tax under a different set of rules than you should, which often leads to overpayment, and therefore a refund.

There are also emergency tax codes the HMRC can temporarily assign you when they aren’t sure how much you should be paying in taxes (such as when you start a new job). You usually pay much more in taxes on an emergency tax code than what you owe. Consequently, you’ll likely qualify for an HMRC Tax refund.

Who Is Eligible For A CIS Tax Refund? 

You can claim a repayment of your CIS deductions if you are

• A limited company subcontractor, or
• An agent of a limited company,

And

• You have paid too much tax or National Insurance.

Our tax refund calculator can help you work out if you have overpaid.

Can You Get A CIS Tax Rebate After Losing Your Job?

Yes, if you meet one of the following requirements:

• You are looking for work and have been unemployed for four or more weeks.
• You don’t expect to go back to work.
• You return to full-time student status.

You might be able to claim your tax refund prior to the end of the year if you meet these requirements.

It might be a good idea to take a look at Uniform Tax Rebates as well, as many construction professionals have uniform costs to consider too.

Other Expenses

Food – You might also be able to claim meal expenses if you save all your receipts. Meals must be purchased in the course of your job while travelling to qualify for an HMRC tax rebate.

Professional Fees and Subscriptions – If you are a part of a professional society, or subscribe to any industry publications, you could get a tax rebate. They must be relevant to your job or business, though.

Tools/Equipment Tax Rebates – Many construction workers don’t realise that they can get a tax rebate for costs associated with the tools or equipment they use for work. You can claim for the cost of repairs and upgrades, but not the initial purchase price.

What Information Do You Need To Claim My Tax Rebate?

Some basic paperwork needed includes:

• P45 and/or P60 from your employer(s) or pension provider(s)
• P11D from your employer if you receive in-kind benefits
• Bank and/or building society statements
• Statutory interest paid as part of a PPI claim and any tax deducted from the interest
• Dividend certificates
• Rental income/expenses

How Far Back Can I Claim?

You can claim tax back for the four years from the end of the tax year for which you overpaid tax. Tax years start on April 6th and end on April 5th the following year.

For example, if you are owed a rebate for tax year 2017, you’d have until April 5th, 2021 to claim it.

How Long Does My Tax Refund Take? 

The time it takes to receive your income tax refund will vary. If you are a sole trader and eligible for a CIS tax rebate, then your tax rebate should take between 1 to 8 weeks but this depends on the time of year; for example, the end of the financial year may take longer to process.

We generally see our clients being paid their CIS tax refund within around 10 days of when they apply for a tax refund.

Will COVID-19 Affect My Tax Refund?

COVID-19 is not likely to affect your income tax refund. HMRC has put structures in place to ensure they can pay out refund claims on time.

How Tax Refund Calculator Can Help You.

Claiming the money you’re owed can seem daunting with so many rules in place, whether you are an employee or self-employed.

With Tax Refund Calculator, none of this is a worry.

Simply use our calculator to see what you are owed and let us do the rest.

If you ever have any questions, we are always on hand to help out