The situation
A self employed groundworker had 20% deducted from his pay under the Construction Industry Scheme across the year. Like many subcontractors, he assumed the deductions simply were his tax, and had previously filed a rushed return that left money on the table.
The problem
Because CIS is taken before expenses and the personal allowance, he had almost certainly overpaid, but he had not kept all his deduction statements and had claimed only a fraction of his allowable costs. His tools, mileage, protective clothing and insurance were going unclaimed.
What we did
- Gathered every statement. We collected a deduction statement from each contractor so the full CIS taken was accounted for.
- Claimed all his expenses. Tools, van running costs, mileage, protective gear and insurance were all brought into the return.
- Filed quickly and accurately. We submitted a clean return so HMRC could process the refund without queries.
What changed
With every deduction accounted for and his expenses properly claimed, his overpaid CIS came back as a refund of several thousand pounds, well above what he had received in previous do it yourself years. He also now keeps his statements and receipts as he goes, so future claims are quick and complete.
What this shows
Most subcontractors are owed a CIS refund, and the size of it comes down to claiming every allowable expense and keeping every statement. A rushed return usually means a smaller refund.
Owed a CIS refund?
If tax has been deducted from your construction pay, you may be owed more than you think. We gather your statements, claim everything allowable, and get the maximum refund, sooner.