The Construction Industry Scheme (CIS) is a tax mechanism for contractors and subcontractors in the construction sector. If you’re a limited company subcontractor under CIS, you may be entitled to claim back deductions made by contractors from your payments. Here’s a very handy guide on how to make a CIS claim and ensure your tax affairs are in order.
Who Can Claim a CIS Refund?
Limited companies operating as subcontractors can claim back CIS deductions if:
- Excess tax or National Insurance contributions have been paid.
- They have submitted all necessary PAYE, Corporation Tax, and VAT information.
For sole traders, CIS deductions are offset through the Self-Assessment process.
What You Need for Your CIS Claim
To file a CIS refund claim, you will need:
Business Details:
Company name, address, PAYE reference, and Corporation Tax Unique Taxpayer Reference (UTR).
Financial Records:
Evidence of CIS deductions, such as Payment and Deduction Statements (PDS) from contractors.
Bank Details:
For direct payments, provide your bank account number, sort code, and account name.
If claiming on behalf of another party (e.g., using an agent), complete the R38 form or submit equivalent authorization
How to Make a CIS Claim
Online Claim:
- Log in to your Government Gateway account and use the Employer Payment Summary (EPS) form to report CIS deductions for the year.
- HMRC offsets these against your PAYE and National Insurance liabilities. Any excess can be refunded or carried forward.
Postal Claim:
- If online submission isn’t an option, send a claim with all required documents to HMRC at:
Copy code
PT Operations North East England
HM Revenue and Customs
BX9 1BX
United Kingdom
Amend or Adjust Claims:
If an error is identified, notify HMRC by submitting a revised claim, either online or via post.
Tips for a Smooth Claim Process
- Submit your claim early in the tax year to avoid delays.
- Retain all CIS-related documentation, such as monthly statements, for at least six years as part of compliance requirements.
- Ensure all PAYE and Corporation Tax filings are up to date before submitting a refund request
Handling Common Issues
If HMRC disputes your claim, they may request additional evidence. Respond promptly to avoid rejection. If the claim is denied incorrectly, you can appeal through HMRC’s appeals process
For more details, visit the official CIS refund guidance on GOV.UK