How to Claim Back Tax Under the Construction Industry Scheme

Construction Industry

How to Claim Back Tax Under the Construction Industry Scheme

Under the construction industry scheme (CIS), the contractor withholding your taxes is obliged to withhold tax on its payments to you. Many people under CIS overpay their taxes and need to claim a refund later. This article covers the how-to of claiming back tax under the CIS.

What Is CIS?

CIS stands for Construction Industry Scheme. This is a tax-saving plan that was launched in 1984. It aimed to boost construction activity in the UK. It allows contractors, subcontractors and suppliers to enter into a partnership to limit their tax liabilities.

As such, they can make more money as they pay less tax. The scheme also encourages construction companies to invest more in the UK.

What Is CIS Tax Offset?

CIS tax offset means that the contractors you work for must make the appropriate allowances for income tax and National Insurance contributions (NIC). They will then deduct the correct amounts from your income and make the proper payments to HMRC.

In most cases, CIS tax offset is automatic. It forms a part of your contract with your client or the contractor you work for. They will make the proper arrangements to give you the correct tax credits. In this way, you will pay the right amount of tax.

You will also qualify for additional tax relief. This means that you will pay fewer taxes than the rates and thresholds of the standard tax system.

How to Claim Back Tax Under CIS Step by Step

Below is a step by step guide to claiming back tax under CIS.

Step 1: Work Out How Much You Have Overpaid

You will need to work out how much you have overpaid first. Do this by comparing how much tax you paid during the year to what you should have paid.

Step 2: Calculate Your Tax Code

Once you have worked this out, you can calculate your tax code. Use the table below to find out the code you need to use.

Step 3: Fill Out Your Tax Return

Once you have worked out how much you can claim, you can fill out your tax return. It is easy to use the tax code you have worked out. Just enter the code, and your tax credit will be calculated automatically.

Step 4: Make Your Claim

You will need to complete your tax return and make your claim. You will also need to provide supporting documents. These may include a P60, a payslip and invoices. This should help you claim back any tax you have paid over the period. You will then get a refund to take care of any overpayment.


Claiming back tax under the construction industry scheme is not hard. You do not need to file a tax return for a complete tax year in most cases. Your employer will adjust your tax code for you. However, if you have worked for less than an entire tax year, you must file a tax return. You will then be able to claim back any tax you have overpaid.

At Tax Refund Calculator, you can calculate if you have overpaid your tax, helping you claim back what is rightfully yours. By calculating whether you have overpaid tax due to unused uniform allowance or marriage tax allowance, you might be in for a nice surprise in payment from HMRC. If you want to check your tax refund, we’ve got you covered! Use our calculator now!