How to Successfully Submit a CIS Repayment Claim?

Key Highlights

• If you’re a subcontractor under the Construction Industry Scheme (CIS), you may be due a tax refund.
• CIS deductions are advance payments on your tax and National Insurance bill.
• You can claim a repayment if your CIS deductions exceed your final tax liability for the tax year.
• Both sole traders and limited companies can claim, but the process differs for each.
• Accurate record-keeping of your deduction statements and allowable expenses is crucial for a successful claim.

If you’re a subcontractor in construction, you’ve probably dealt with the Construction Industry Scheme (CIS). It means contractors take tax from your payments before you even get them.

The problem? These deductions often add up to more tax than you actually owe. That leaves many subcontractors short on cash during the year.

The good news is you can claim that extra money back through a CIS repayment, and doing it correctly helps you get your refund faster.

This guide will walk you through how to successfully submit a CIS repayment claim and secure your tax refund.

What Is the Construction Industry Scheme (CIS)?

The Construction Industry Scheme, or CIS, is an HM Revenue & Customs (HMRC) system designed to manage payments for construction work. It requires contractors to deduct money from a subcontractor’s payments and pass it directly to HMRC.

These deductions count as advance payments towards the subcontractor’s tax and National Insurance contributions. At the end of the tax year, if you’ve paid too much tax through CIS deductions, you can claim a refund. The standard deduction rate is 20% for registered subcontractors.

Why Do Subcontractors and Limited Companies Submit CIS Repayment Claims?

Many subcontractors and limited companies end up overpaying tax under CIS because the standard deduction rate doesn’t reflect their actual liability. A CIS repayment claim allows them to recover the excess tax deducted from their payments.

One major reason for this is fluctuating income. The construction industry can have peak periods followed by quieter times, but CIS tax deductions continue at a set rate. This can result in excessive deductions, especially during high-income months.

You can also lower your taxable income by claiming allowable business expenses, because these expenses aren’t considered when CIS deductions are made. Claiming these expenses correctly reduces your overall tax bill and can trigger a refund.

What Does It Mean to Claim Repayment of Deductions from CIS?

When you file your tax return at the end of the tax year, you calculate your actual income tax and National Insurance liability. This calculation takes into account your total earnings and any allowable business expenses you’ve incurred.

If the total amount of your CIS deductions is more than your final tax bill, you have overpaid tax. You can then claim a refund for the difference. You’ll need your deduction statements to prove the amount of tax that contractors have already paid on your behalf.

Who Can Submit a CIS Repayment Claim?

If you’re a subcontractor working under the Construction Industry Scheme (CIS) and have had tax deducted from your payments, you may be entitled to a refund.

Whether you’re a sole trader, part of a partnership, or run a limited company, you can claim back any overpaid tax under CIS. The process simply varies depending on your business structure.

Eligibility Criteria for Subcontractors

As a self-employed subcontractor, you can claim a CIS refund if you’ve had tax deducted by contractors on your work. To qualify, you’ll need to be registered for Self Assessment and file your annual tax return showing your income, expenses, and deductions.

If the CIS tax you’ve paid is more than what you owe after expenses, HMRC will refund the difference.

You’re eligible if you:

• Are registered as a subcontractor under CIS.
• Have had CIS tax deducted by contractors.
• File a Self Assessment tax return with HMRC.
• Can show proof that your deductions exceed your tax and National Insurance owed.

Eligibility Criteria for Limited Companies

Limited companies working as subcontractors can also claim a CIS refund if they’ve had deductions taken from their payments. The process, however, works through payroll.

Your company is eligible if:

• It’s registered with HMRC under CIS.
• You have CIS deduction statements showing the tax withheld.
• You offset those deductions against your PAYE and National Insurance liabilities before claiming a refund.

If your deductions are higher than what your company owes, you can reclaim the difference directly from HMRC.

What Do You Need Before Starting Your CIS Repayment Claim?

Before you begin your CIS repayment claim, it’s essential to gather all the necessary documents and information. Being prepared will make the process smoother and help avoid delays. You’ll need proof of the CIS deductions made, such as your CIS deduction statements.

Here is a list of what you’ll typically need:

• Your company name, telephone number, and address
• Your PAYE reference number
• Your Unique Taxpayer Reference (UTR) number
• Your National Insurance Number
• CIS deduction statements or payslips
• Invoices for the work you completed
• Receipts and records for any claimable business expenses

How to Claim CIS Repayment Online Correctly?

Claiming your CIS refund online is the quickest and most efficient way to recover overpaid tax.

You’ll need a Government Gateway User ID and Password to access your HMRC account. If you don’t already have one, you can create it the first time you log in. Once signed in, you can enter your CIS deduction details, complete your tax return, and track your repayment progress in real-time.

Here are the steps you need to follow to claim your CIS repayment correctly and ensure your refund is processed without delays.

Step 1: Gather and Verify All CIS Statements

Start by collecting all CIS deduction statements for the relevant tax year. Each contractor you worked with should have provided a monthly statement showing how much tax was deducted from your payments.

To prepare properly:

• Collect all CIS deduction statements for the entire tax year.
• Confirm that each statement matches your payment records.
• Check that your details, gross amounts, and CIS deductions are correct.
• Contact contractors immediately if any errors appear on your statements.
• Organise all statements by month or contractor for easy reference.

Step 2: Complete Your Self Assessment Return or Employer Payment Summary (EPS)

The process for claiming CIS deductions depends on your business structure. Whether you’re self-employed or a limited company, you’ll need to report your deductions accurately to HMRC.

For sole traders or partnerships:

• Report total income from construction work in your Self Assessment return.
• Enter the total CIS deductions made by your contractors in the correct section.
• Review figures carefully before submitting to avoid discrepancies.

For limited companies:

• Offset CIS deductions against your PAYE liabilities each month.
• Submit an Employer Payment Summary (EPS) to HMRC to report these offsets.
• Keep a record of all PAYE submissions for your accounts and future claims.

Step 3: Fill Out the CIS Repayment Claim Form Accurately

It’s really important to thoroughly check the form before filling it out to avoid any mistakes or penalties.

Before submitting:

• Enter the exact CIS deduction totals from your verified statements.
• Double-check all income and business details for consistency.
• Include the correct bank account information for faster refunds.
• Review every field carefully before final submission.

Step 4: Submit the Claim Through the HMRC Portal or Post

Once everything is ready, you can send your claim to HMRC either online or by post. Submitting online is always the quicker and safer option.

If submitting online:

• Log in to your Government Gateway account to access your HMRC portal.
• File your Self Assessment tax return (for sole traders) or submit your PAYE details through HMRC’s online service (for companies).
• Track your CIS repayment claim status directly through your HMRC account.

If submitting by post:

• Send a paper Self Assessment tax return or written claim letter to HMRC.
• Keep a copy of your submission for your own records.
• Use a tracked delivery service to confirm safe receipt.

By following each step carefully, verifying your records, and keeping organised documentation, you can avoid delays and ensure your refund is processed without issues.

How to Track and Manage Your CIS Repayment Claim?

After submitting your CIS repayment claim, it’s important to stay informed about its progress and be prepared for any follow-up from HMRC. Tracking your claim regularly ensures you stay updated and can respond quickly if additional information is required.

Tracking Your CIS Repayment Claim

If you’ve filed online, HMRC allows you to check your claim’s status directly through your digital account. This is the most efficient way to stay updated.

To monitor your claim effectively:

• Log in to your HMRC online account using your Government Gateway credentials.
• Check the ‘Tax Refunds’ or ‘CIS Repayment’ section for progress updates.
• Review any notifications or messages HMRC sends regarding your claim.
• Keep your reference number and submission date handy for easier tracking.

Being proactive and checking regularly helps you identify potential issues early and avoid unnecessary delays.

Expected HMRC Processing Times

The time HMRC takes to process your CIS repayment can vary depending on how you filed and the complexity of your claim.

Typical processing timelines:

• Online submissions are usually processed within a few weeks if all details are correct.
• Postal submissions can take longer — sometimes several weeks or more.
• Additional security checks may extend the process, especially for first-time claimants or large refund amounts.
• Peak periods, such as just after the tax year ends on 5 April, may result in longer processing times due to higher claim volumes.

To avoid delays:

• Double-check that all figures and records match HMRC’s data.
• Submit claims early and ensure all supporting documents are in order.

Follow Up on Delayed or Pending Claims

If your refund seems delayed, it’s essential to stay proactive and communicate clearly with HMRC. Prompt action can help resolve issues faster.

If your claim is taking longer than expected:

• Gather your reference number, UTR, and CIS deduction statements before contacting HMRC.
• Reach out using the HMRC online contact form or helpline.
• Provide your bank details and verification information if requested.
• Ask if any security or verification checks are holding up the process.
• Maintain regular communication until your claim is confirmed and refunded.

What are the Mistakes to Avoid When Claiming CIS Repayments?

Even small mistakes on your CIS repayment claim can delay your refund or trigger unnecessary questions from HMRC. Understanding where most people go wrong helps you file correctly the first time.

1. Claiming Non-Business Expenses

Only claim costs that are wholly and exclusively for business purposes. Personal or part-personal expenses often raise red flags with HMRC.

How to avoid it:

Keep clear records separating business and personal costs, and double-check that every expense you include directly relates to your construction work.

2. Filing Before 5 April

HMRC only processes CIS refunds after the tax year ends. Filing before this date can result in delays or the need to resubmit your claim.

How to avoid it:

Wait until the new tax year begins before submitting your claim, and ensure all CIS statements for the full year are included.

3. Incorrect or Missing Details

Simple errors like an incorrect National Insurance Number, missing CIS deduction totals, or incomplete records can hold up your claim.

How to avoid it:

Verify all personal, business, and banking details before submission, and make sure every deduction listed matches your CIS statements.

4. Limited Companies Filing Incorrectly

Some limited companies mistakenly claim CIS deductions through their Corporation Tax return instead of via PAYE submissions.

How to avoid it:

Ensure your finance or payroll team claims deductions correctly through PAYE. If unsure, confirm with HMRC or use professional support to avoid processing delays.

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Conclusion

The CIS repayment claim process can feel a bit overwhelming at first, but it becomes much easier once you understand how it works. Staying organised and keeping your documents in order makes everything run smoothly. With a little preparation, you can handle your claim confidently and avoid unnecessary stress.

Frequently Asked Questions

Can limited companies and sole traders follow the same CIS repayment claim process?

Sole traders claim CIS refunds through their annual Self Assessment, while limited companies offset CIS deductions against monthly PAYE liabilities using an Employer Payment Summary before claiming any remaining overpaid tax from HMRC.

Is there a deadline to apply for a CIS repayment claim each tax year?

Yes, there is a filing deadline. You can claim a CIS refund for a particular tax year up to four years after the end of that tax year. For example, for the 2023/24 tax year, you have until April 5, 2028, to submit your claim and recover the overpaid amount of tax.

What should I do if my CIS repayment claim is delayed or rejected?

Check your HMRC online account for updates. If rejected, review the reason and submit corrected details. For persistent delays or unresolved issues, contact the HMRC CIS helpline for assistance with your original repayment claim.

Can I claim a CIS repayment online, or does it have to be done by post?

You can do both. Online submission through your Government Gateway account is the fastest for tracking and approval, but you can still post your claim or written request to HMRC’s employer office if preferred.

What Is Gross Payment Status and How to Apply

Gross Payment Status lets subcontractors receive full payments without CIS deductions. To qualify, you must prove strong tax compliance, UK business operation, and meet HMRC’s turnover requirements specific to your construction work and trading history.

How to Navigate CIS Repayment for Non-Resident Subcontractors?

Non-resident subcontractors working in the UK can reclaim CIS tax by filing a UK Self Assessment return. The process is similar, but double-taxation treaties may affect how much tax they can recover or offset.

How to Recover Missed CIS Deductions in Previous Tax Years?

You can reclaim overpaid CIS deductions for previous tax years within four years. Submit an amended return or separate claim for each missed year and include all relevant deduction statements as supporting documentation.

What Are CIS Repayment Claims for Companies?

CIS repayment claims for companies apply to limited companies that work as subcontractors. These companies can reclaim overpaid tax if CIS deductions exceed their PAYE and National Insurance liabilities.