How subcontractors in Brighton & Hove claim back CIS deductions through Self Assessment
Contractors deduct CIS from your labour payments and pay it to HMRC on your behalf. The standard rate is 20% for registered subcontractors, 30% if you are not registered, and 0% if you hold gross payment status. The deduction is taken on the labour element, not on materials you paid for.
That deduction is not your final tax bill. When you file your Self Assessment return, you declare your total income and expenses and HMRC works out the tax and Class 4 National Insurance you owe. Any CIS already deducted is set against that bill. If more was deducted than you owe, HMRC repays the balance.
Most subcontractors have significant expenses (tools, van costs, insurance, work clothing) and take home well below the level at which 20% is the right rate, so a refund is common.
| Item | Amount |
|---|---|
| Profit | £22,000 |
| Personal allowance | £12,570 |
| Taxable profit | £9,430 |
| Income tax at 20% | £1,886.00 |
| Class 4 NIC at 6% of £9,430 | £565.80 |
| Total tax and NIC | £2,451.80 |
| CIS deducted | £6,000.00 |
| Refund due | £3,548.20 |
This assumes no other income and no student loan. A real return depends on your own figures, but it shows why the deduction is a credit, not a cost.
Your monthly CIS statements from each contractor are the evidence. Keep them, and ask contractors for any that are missing. We reconcile them against your bank receipts before filing.
See also: CIS for builders and contractors, how to register as a CIS subcontractor and what tradespeople can claim. Our fixed monthly fee for a self-employed person starts at £30 a month.
Sources: GOV.UK Construction Industry Scheme, GOV.UK Income Tax rates.
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You claim it through your Self Assessment tax return. Your CIS deductions are treated as tax already paid, so if they exceed your tax and Class 4 National Insurance bill for the year, HMRC refunds the difference.
It depends on when you file and whether HMRC queries the return. File soon after 5 April with your CIS statements to hand and you avoid the January backlog. HMRC pays the refund to the bank account you give once the return is processed.
Yes, but not through Self Assessment. A limited company subcontractor offsets CIS deducted against its PAYE and National Insurance payments, and any excess is refunded through payroll filings.
The 30% rate applies when a subcontractor is not registered for CIS. The tax is still credited on your return, so you can reclaim any overpayment, but registering avoids the cash-flow hit. Our CIS registration guide explains how.