How long does a CIS refund take?

HMRC typically processes CIS refunds within 5-6 weeks of receiving the claim, though delays can occur during peak periods. Taxbix submits claims promptly and follows up with HMRC where necessary to expedite repayment.

What expenses can CIS subcontractors deduct?

Allowable expenses include: materials used in the work (where not recharged to the contractor), plant and tool hire, protective clothing and safety equipment, travel to sites from a regular base, and relevant insurance. Labour costs from your own wages cannot be deducted by sole traders.

What is the difference between a contractor and subcontractor under CIS?

Under CIS, a contractor is any business that pays others for construction work. A subcontractor is paid to carry out that work. Some businesses are both - they receive CIS payments from above and also pay CIS subcontractors below. Both roles carry separate CIS filing obligations.

Can I get CIS gross payment status?

Gross payment status removes the 20% deduction from your payments. To qualify, your business must have annual turnover of at least £30,000 (for companies), a satisfactory tax compliance record, and a UK bank account. Taxbix manages the application and annual compliance review.

Construction & CIS Accounting

CIS Subcontractor Accountant UK

CIS subcontractors have 20% deducted from every payment before it reaches them. Many are owed thousands in overpaid tax - but never claim it. Taxbix specialises in recovering CIS overpayments and keeping subcontractors fully HMRC compliant.

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How CIS Deductions Work

Under the Construction Industry Scheme, contractors must deduct 20% from payments to registered subcontractors (or 30% from unregistered ones). These deductions are paid to HMRC on your behalf and offset against your Corporation Tax or Income Tax liability at year end. If deductions exceed your tax bill, HMRC refunds the difference.

Claiming Your CIS Deductions Back

At the end of the tax year, your total CIS deductions are compared against your total tax liability. If your deductions exceed what you owe - which is common for subcontractors with significant expenses - HMRC refunds the difference, sometimes running to £2,000-£5,000 or more. Taxbix calculates your refund accurately and expedites the repayment request.

Gross Payment Status

Gross payment status allows subcontractors to receive full payments without any CIS deduction - improving cash flow significantly. To qualify, your business must pass HMRC's turnover, tax compliance, and bank account tests. Taxbix advises on eligibility, prepares the application, and manages the annual review to maintain gross status once obtained.

CIS Registration and Verification

To be deducted at 20% rather than 30%, you must be registered as a CIS subcontractor with HMRC. Contractors are legally required to verify your registration before making their first payment to you. Taxbix handles CIS registration, ensures you are verified correctly across all contractors, and advises on maintaining your compliance record.

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