CIS Refunds: Are You Owed Money by HMRC?
If you work as a subcontractor under the Construction Industry Scheme, CIS deductions are taken from every payment before you see a penny. That’s 20% if you’re registered, 30% if you’re not. Over the course of a year, those deductions add up fast.
The problem is that most subcontractors and contractors end up overpaying. The deductions come off your gross income, but your actual tax bill is based on your profit — after expenses. For anyone with significant costs — materials, plant hire, fuel, subcontractors of their own — the gap between what’s been deducted and what you actually owe can be substantial.
How much could you be owed?
It varies enormously depending on your turnover, your costs, and your business structure. We’ve seen refunds ranging from a few thousand pounds to well over £50,000 for busier contractors who haven’t been claiming everything they’re entitled to.
Why doesn’t everyone claim it back?
The honest answer is that most accountants who aren’t specialists in construction don’t know how to go after it — or don’t realise how much their client is owed. CIS refunds require accurate bookkeeping, properly claimed expenses, and timely filing. If any of those elements are missing, money gets left on the table.
What should you do?
If you’ve been operating under CIS for more than a year and haven’t had a refund conversation with your accountant, it’s worth getting a second opinion. A specialist will be able to tell you quickly whether you’re likely to be owed money and what needs to happen to reclaim it.
At Graft, CIS refund recovery is a core part of what we do. If you’d like to find out where you stand, book a free 30-minute consultation and we’ll give you an honest assessment.