Construction workers using the Construction Industry Scheme (CIS) can claim tax refunds for travel expenses to temporary workplaces as well as claiming back overpaid tax. The average annual rebate for CIS workers is £2,000.
CIS tax is a special tax scheme just for the construction industry. Under the CIS tax scheme, contractors make tax deductions from their subcontractors and pay the money to HMRC. The CIS tax deductions count as advance payments towards the subcontractor’s tax and National Insurance.
Many construction workers file their own CIS tax returns. There’s nothing at all wrong with this, if you know your way around the rules. However, it’s easy to miss out on CIS claims or make costly mistakes so it’s important you have all the information you need for a CIS tax refund.
Specialist CIS tax rebate services exist in our firm to help people in the construction industry who work as sub-contractors to claim back overpaid tax. If you’re a sub-contractor on a site being run by someone else, then your employer will be deducting tax directly from your pay before you get it. This almost always means you’re losing 20% of it.
Because of this, at the end of the working year when you file your self assessment tax return, you’ve probably been overcharged. Basically, the tax taken from your wages during the year is probably higher than the amount you actually owe.
It takes a lot of specialist accounting knowledge to claim tax back for everything you are owed by the taxman. Every year, far too many people are still shelling out tax they don’t owe. In the worst-case scenario, they don’t get any CIS tax rebate at all. Even if they do, all too often it’s nowhere near as high as it should be.
For more information, or to arrange an initial meeting to discuss your requirements please call us on 0141 331 2496, email us at accounts@riazahmadca.com or get a quote for a service