The Construction Industry Scheme takes tax from a subcontractor's pay before expenses are counted, which is why most subcontractors have overpaid by the end of the year. On the contractor side, the rules on verification, deductions and the VAT reverse charge are easy to get wrong.
We work with both sides of the industry. We recover the refunds subcontractors are owed and keep contractors compliant, accurate and on time.
The tax challenges construction businesses and subcontractors face
- Tax deducted under CIS before any expenses are taken into account
- Keeping deduction statements and expense records across multiple sites
- The domestic VAT reverse charge on construction services
- Verifying subcontractors and applying the right deduction rate
- Mixing employment and self employment incorrectly
What we help with
- CIS refund claims for subcontractors
- Self Assessment and company returns
- Every allowable expense, from tools to travel and materials
- VAT reverse charge set up correctly
- Contractor monthly CIS returns
- Payroll where you employ staff directly
Common mistakes to avoid
Not claiming tools, travel, materials and protective clothing in full
Losing CIS deduction statements that prove the tax already paid
Getting the VAT reverse charge wrong on invoices
Treating a worker as self employed when they should be on payroll
Useful tax tips
- Keep every CIS statement, as it is your proof of tax already deducted
- Log mileage between sites, as travel is often a significant allowable cost
- If you are VAT registered in construction, check the reverse charge applies before invoicing
- File early so any refund reaches you sooner
Example scenario
A subcontractor owed a refund
A bricklayer working under CIS had 20 per cent deducted from every payment all year. Once we prepared the return with tools, travel, insurance and other allowable costs, the tax actually due was well below the amount deducted, and the difference came back as a refund within a few weeks of filing.
Frequently asked questions
How do CIS refunds work?
Because CIS tax is deducted before expenses, most subcontractors have overpaid. Once we prepare your return with your expenses, the overpaid amount is refunded by HMRC, usually within a few weeks.
What is the VAT reverse charge?
For many construction services between VAT registered businesses, the customer accounts for the VAT rather than the supplier. We set your invoicing up correctly so you stay compliant.
Do you help both contractors and subcontractors?
Yes. We handle subcontractor refunds and returns, and contractor monthly CIS returns and verification.
Do you only work locally?
We work online with construction businesses across the UK.