CIS Tax Refunds
CIS Tax Refunds for Construction Workers: How to Claim What You’re Owed in 2026
If you work in construction as a subcontractor, there’s a good chance HMRC owes you money — and you might not even know it.
Every year, thousands of construction workers across the UK overpay tax through the Construction Industry Scheme (CIS) and never claim it back. This guide explains exactly what CIS is, how refunds work, what you can claim, and how to make sure you’re not leaving money on the table.
What Is the Construction Industry Scheme (CIS)?
CIS is a tax scheme run by HMRC that applies to contractors and subcontractors working in the UK construction industry.
Under CIS, contractors are required to deduct tax directly from your pay before you receive it and send it to HMRC on your behalf. The deduction rates are:
· 20% if you’re registered with CIS
· 30% if you’re not registered (unverified)
· 0% if you have gross payment status
Here’s the key thing most subcontractors don’t realise: these deductions are rarely the exact amount of tax you actually owe. In most cases, too much is taken — which means you’re entitled to a refund.
Who Can Claim a CIS Tax Refund?
You may be eligible for a CIS refund if you:
· Work as a self-employed subcontractor in construction
· Have had CIS deductions taken from your payments by a contractor
· Have allowable business expenses that reduce your taxable profit
· Have not yet filed a Self Assessment tax return for the relevant year
You can claim CIS refunds for up to four tax years — so if you’ve been working in construction for a while and haven’t filed, you could be owed a significant sum.
How Much Could You Get Back?
It varies depending on your income and expenses, but the numbers can be substantial.
Example: A subcontractor earning £35,000 a year with £8,000 in allowable expenses has a taxable profit of £27,000. If they’ve had 20% CIS deductions taken on their full £35,000 earnings, they’ve overpaid — and could be owed £1,000–£3,000 or more back from HMRC.
The more expenses you can legitimately claim, the bigger your refund.
What Expenses Can You Claim?
This is where most construction workers miss out. You can claim a wide range of work-related costs against your income:
Tools & Equipment - Hand tools, power tools, safety equipment - Replacement parts and repairs
Travel & Transport - Mileage to and from different job sites (not your regular commute) - Public transport costs for work travel - Van running costs (fuel, insurance, servicing) if used for work
Clothing & PPE - Protective clothing, boots, hi-vis vests, hard hats - Uniforms with a company logo
Training & Qualifications - CSCS cards, CITB courses, trade-specific training
Other Allowable Costs - Materials you’ve purchased for a job - Accommodation when working away from home - Phone and internet (business use portion) - Accountancy fees for filing your return - Public liability insurance
Pro tip: Keep every receipt. Even small expenses add up — and they all reduce your tax bill.
What You Cannot Claim
To keep things straight, here’s what HMRC won’t allow:
· Your daily commute to a regular, fixed workplace
· Personal clothing (even if worn on site)
· Client entertainment
· Fines or penalties
· Any personal expenses mixed in with business costs
How to Claim Your CIS Refund: Step by Step
Step 1: Register for Self Assessment If you haven’t already, register with HMRC as self-employed. You’ll need to do this to file a tax return and claim your refund.
Step 2: Gather Your CIS Statements Ask your contractors for your CIS payment and deduction statements. These show exactly how much has been deducted from your pay.
Step 3: Collect Your Receipts and Records Pull together all your allowable expenses for the tax year — tools, travel, materials, PPE, and anything else work-related.
Step 4: File Your Self Assessment Tax Return Your refund is calculated when you file. HMRC will compare what you’ve paid through CIS deductions against your actual tax liability.
Step 5: Receive Your Refund Once HMRC processes your return, refunds are typically paid within 5–6 weeks — directly into your bank account.
Common Mistakes That Cost Construction Workers Money
1. Not registering for CIS Unregistered subcontractors pay 30% deductions instead of 20%. Registering takes minutes and saves you money immediately.
2. Missing expenses Most subcontractors underestimate what they can claim. A thorough review of your expenses could significantly increase your refund.
3. Filing late Late returns attract penalties from HMRC — even if you’re owed a refund. The deadline is 31 January each year.
4. Mixing personal and business costs Keep your finances separate. Mixed records make it harder to claim everything you’re entitled to.
5. Not claiming for previous years You have up to four years to claim. Many workers don’t realise they can go back and recover refunds from past tax years.
The 2026 MTD Update: What CIS Workers Need to Know
From April 2026, Making Tax Digital (MTD) for Income Tax affects self-employed CIS subcontractors earning over £50,000. From 2027, the threshold drops to £30,000.
Under MTD, you’ll need to: - Keep digital records of all income and expenses - Submit quarterly updates to HMRC via MTD-compatible software - File an end-of-year declaration
This is a significant change. If you’re not already keeping organised digital records, now is the time to start — before it becomes a legal requirement.
Don’t Leave Money With HMRC
CIS deductions are designed as a tax collection mechanism — not a final tax bill. If you’re a subcontractor and you haven’t been filing Self Assessment returns, you are almost certainly owed money.
The process doesn’t have to be complicated. With the right help, most CIS refund claims are straightforward and can be resolved quickly.
Let TLC Centre Handle It For You
At TLC Centre, we specialise in CIS tax returns for construction workers across the UK. We’ll review your deductions, identify every expense you’re entitled to claim, and file your return accurately — so you get back everything HMRC owes you.
With over 20 years of accounting experience, we know exactly what HMRC looks for and how to maximise your refund legally.
📱 WhatsApp: +44 7897 901778 🌐 tlcentre.uk
In-person and tel/WhatsApp consultations available.