Claiming Back Over-Paid Tax Under The CIS
If you have been deducted CIS tax during the year, why not start the process of reclaiming any potential over-paid tax back from HMRC now?
Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor’s payments and pass it to HMRC. The deductions count as advance payments towards the subcontractor’s tax and National Insurance.
Under the CIS, contractors are required to deduct a percentage of the subcontractor’s payment (usually 20%) and pay it to HMRC as an advance payment towards the subcontractor’s tax and NI contributions. If a sub-contractor has ended up paying more tax than they owe during a tax year, they can claim it back. However, to do that, means submitting their self-assessment tax return to HMRC sooner, rather than later.
Now we have passed the 1 April 2025, we’d encourage any sub-contractors to submit their self-assessment tax return to set the ball rolling on any rebates due to them.
Don’t hesitate to contact us if you’ve got any questions: tel: 01892 513515.