CIS guides for subcontractors

Getting your CIS money back

How over-deducted CIS comes back, how long it takes and what to do when it stalls.

• Can a limited company claim back CIS deductions?

  A company sets CIS deductions against its PAYE bill on the Employer Payment Summary, then claims any excess after 5 April. How it works, with an example.

• Can I claim a CIS refund without an accountant?

  Yes. A CIS refund is claimed on your own Self Assessment tax return, which you can file yourself. What you need, the steps, and when paying for help pays.

• Can I claim back CIS deductions from previous years?

  Usually yes, for up to 4 years after the tax year ends. The 2022-23 CIS deductions must be claimed by 5 April 2027. Deadlines by year and the steps to claim.

• Does HMRC pay interest on a late CIS refund?

  HMRC pays repayment interest on a CIS refund, but only from 31 January after the tax year ends. The current rate, how the dates work and a worked example.

• How do I check my CIS deductions with HMRC?

  Check your CIS statements against your bank, then call the CIS helpline if HMRC's figures may differ. Under MTD, HMRC shows the deductions it holds.

• How do I check the status of my CIS refund?

  Check a CIS refund in your HMRC online account, read what pending means, and know when to call HMRC and which number to use. Helpline details checked today.

• How do I claim a CIS refund as a builder?

  Self-employed builders claim over-deducted CIS back after 5 April: in the tax return, or under MTD through HMRC online services. A worked example and steps.

• How do I claim a CIS refund as a decorator?

  Decorators claim over-deducted CIS back after 5 April. Builder jobs, homeowner work, labour-only rates, MTD, a worked example and the steps to claim.

• How do I claim a CIS refund as a gas engineer?

  Gas engineers claim over-deducted CIS back after 5 April. Which heating jobs have a deduction, householder work, MTD, a worked example and the steps.

• How do I claim a CIS refund as a landscaper?

  Landscapers claim over-deducted CIS back after 5 April. Hard landscaping, hired diggers, garden rounds, MTD, a worked example and the steps to claim.

• How do I claim a CIS refund as a plasterer?

  Labour-only plasterers often overpay through CIS. How to claim it back after 5 April, what 30% months mean, MTD, a worked example and the steps.

• How do I claim a CIS refund as a plumber?

  Plumbers claim over-deducted CIS back after 5 April. Supply-and-fit materials, boiler swaps, MTD, a worked example and the steps to claim.

• How do I claim a CIS refund as a roofer?

  Roofers claim over-deducted CIS back after 5 April. Tiles and lead you supply, hired scaffold, MTD, a worked example and the steps to claim.

• How do I claim a CIS refund as a self-employed subcontractor?

  Self-employed subcontractors claim over-deducted CIS back through their tax return after 5 April. How it works, a worked example and the steps to claim.

• How do I claim a CIS refund as an electrician?

  Electricians claim over-deducted CIS back after 5 April. Why homeowner jobs shrink the refund, how MTD changes the claim, a worked example and the steps.

• How do I claim a CIS refund if I have lost my CIS statements?

  Lost your CIS payment and deduction statements? Ask the contractor for duplicates, or write to HMRC with the details, then claim through your tax return.

• How long does a CIS refund take?

  HMRC publishes no timescale for CIS refunds. What its general refund guidance says, why filing date matters most, and what can slow a repayment down.

• How much CIS refund can builders expect?

  Worked 2026-27 CIS refunds for builders: labour-only, supplying materials, homeowner extensions and 30% deductions, plus how to estimate your own.

• How much CIS refund can electricians expect?

  Worked 2026-27 CIS refunds for electricians: new-build site work, supplying materials and domestic rewires outside CIS, plus how to estimate your own.

• How much CIS refund can I expect?

  Illustrative 2026-27 CIS refunds for subcontractors at 20%, worked out from GOV.UK rates, plus the simple rule of thumb behind them and what changes the figure.

• How much CIS refund can plumbers expect?

  Worked 2026-27 CIS refunds for plumbers: new-build heating installs, supply-and-fit and boiler swaps for householders, plus how to estimate your own.

• What happens to my CIS deductions if I stop trading?

  Stopped working as a CIS subcontractor? You can claim that year's deductions early on form CIS40, or through your final tax return. How each route works.

• What if my contractor has not paid my CIS deductions to HMRC?

  A contractor took CIS from your pay but did not file or pay it over. What HMRC's CIS manual says about your credit, the evidence it wants and how to raise it.

• Why is my CIS refund delayed?

  Security checks, CIS figures that do not match your contractors' returns, tax you owe and bank details can all hold up a CIS refund. What to do about each.

Rates, deductions and paperwork

The 20% and 30% rates, what the deduction is taken from, and the statements and invoices that prove it.

• Does CIS apply to materials?

  CIS is not deducted from materials you buy yourself, VAT, hired plant or consumables. How the contractor works out the deduction, with a worked example.

• Does CIS apply to plant hire?

  Plant hired with an operator is CIS work; plant hired on its own is not. How hired plant is treated as materials, with worked examples for groundworkers.

• Does CIS apply to travel expenses and mileage?

  Yes. Mileage, fuel, hotels and subsistence a contractor pays you are part of your CIS pay and taxed at 20% or 30%. You claim your real travel costs back later.

• How do I work out a CIS deduction?

  Take VAT, materials, hired plant, consumables and job fuel off the invoice, then apply 20%, 30% or 0%. Three worked CIS deduction examples.

• How does CIS work with VAT?

  CIS and VAT are separate taxes. The CIS deduction is worked out on your invoice excluding VAT, so the reverse charge does not change it. Worked examples.

• How much do I take home on a CIS day rate?

  At 20% CIS you are paid 80% of your day rate: £150 becomes £120. Worked 2026-27 examples at £120, £150 and £200 a day show what comes back after the year.

• Is CIS deducted from retentions?

  Yes, but only when the retention is paid. CIS is taken from what you are actually paid, at your CIS status on the day the retention is released.

• What are the CIS deduction rates?

  CIS deductions are 20% if you are registered, 30% if you are not, and nothing with gross payment status. Who sets your rate, and what it is taken from.

• What is a CIS payment and deduction statement?

  A CIS payment and deduction statement shows what a contractor paid you and deducted each tax month. What must be on it, the 14-day rule and how to check it.

• What is the difference between CIS deducted and CIS suffered?

  CIS deducted is what a contractor takes off a payment. CIS suffered is the same money seen by the subcontractor. Sole traders claim it in box 38 or 81.

• What is the VAT domestic reverse charge for construction?

  VAT-registered subcontractors do not charge VAT to VAT-registered contractors on CIS work; the contractor pays it. When it applies and what invoices say.

• What should a CIS subcontractor invoice include?

  The lines a CIS subcontractor invoice needs: labour split from materials and plant hire, VAT or reverse charge wording, and a worked example of the deduction.

• Why has my contractor deducted 30% CIS?

  A 30% CIS deduction means HMRC could not match you when your contractor verified you, often over a name or UTR mismatch. Why it happens and how to fix it.

What work CIS covers

Which jobs fall inside the scheme, trade by trade, and who counts as a contractor.

• Am I a contractor or a subcontractor under CIS?

  Under CIS you are a contractor when you pay others for construction work and a subcontractor when you are paid for it. Many trades are both. How to tell.

• Does CIS apply in Scotland and Northern Ireland?

  Yes. CIS covers construction work anywhere in the UK, including Scotland, Northern Ireland and UK waters, at the same 20% and 30% rates. Scottish bands differ.

• Does CIS apply to electricians?

  CIS covers installing a whole electrical system, such as a full rewire. Repairs, extra sockets, burglar alarms and security CCTV are outside on their own.

• Does CIS apply to flooring and carpet fitting?

  Carpet fitting is outside CIS, even on a building job. Vinyl, laminate, screeding and other floors are covered when they finish a construction project.

• Does CIS apply to landscaping and gardening?

  Routine gardening and tree surgery are outside CIS. Walls, drives, patios, concrete-post fences and landscaping that finishes a building job are inside.

• Does CIS apply to plumbers and heating engineers?

  CIS covers installing whole heating and water systems and fitting kitchens and bathrooms. A boiler swap, extra radiator, repair or service alone is outside.

• Does CIS apply to repairs and maintenance work?

  Yes for repairs to buildings, alterations and decorating, on new and old property. Repairing or servicing heating, wiring and plumbing systems alone is not.

• Does CIS apply to scaffolding?

  Putting up and taking down scaffolding is covered by CIS. Hiring it out with no labour is not, but one contract to hire and erect brings every payment into CIS.

• Does CIS apply to work for homeowners?

  No. Homeowners paying for work on their own home are not CIS contractors, so nothing is deducted. When a private client does bring in CIS, and paying the tax.

• What is a deemed contractor under CIS?

  A deemed contractor is a non-construction business or public body spending over £3 million on construction in 12 months. What it means for the trades it pays.

• What work is covered by CIS?

  CIS covers most building, civil engineering, installation and decorating work. What is in and out for electricians, plumbers, scaffolders and carpet fitters.

Registering, verification and gross payment status

Getting registered, being verified, and the tests for being paid in full.

• Can I be employed and a CIS subcontractor at the same time?

  Yes. A PAYE job and self-employed CIS work can run side by side. How the tax return, your tax code and any CIS refund work, with a 2026-27 worked example.

• Can I opt out of CIS or cancel my registration?

  No. Contractors must deduct whether you register or not, at 30% if you do not. Registration does not expire; only gross payment status stops deductions.

• Do CIS subcontractors have to file monthly returns?

  No. Contractors file the monthly CIS return. Subcontractors file a yearly tax return and, from 6 April 2027 or 2028 depending on income, MTD quarterly updates.

• Do I need to register as a CIS contractor if I pay subcontractors?

  If you pay another trade for construction work, register as a CIS contractor before you take on your first subcontractor. How to register, and what follows.

• Do I need to register for CIS as a subcontractor?

  If you do construction work for a contractor, you should register for CIS or have 30% taken instead of 20%. What counts as construction work and what does not.

• Does IR35 apply to CIS subcontractors?

  Not to sole traders. IR35 covers work through your own company. Where a medium, large or public sector client puts you inside it, CIS is not operated.

• How do I get gross payment status under CIS?

  Gross payment status stops CIS deductions. Sole traders need £30,000 net construction turnover, 12 months of on-time tax and a bank account the business uses.

• How do I register for CIS as a builder?

  Paid by main contractors and paying your own subbies? Register for CIS twice: as a subcontractor online, and as a contractor through employer setup.

• How do I register for CIS as a plumber?

  Installing heating or water systems for contractors? Register for CIS online with your UTR so you lose 20%, not 30%, and nothing on materials you paid for.

• How do I register for CIS as a subcontractor?

  Register for CIS online with your UTR, or through Self Assessment if you are new. What you need, the 20% and 30% rates, and when gross payment status fits.

• How do I register for CIS as an electrician?

  Wiring for builders? Register for CIS with your UTR so they deduct 20%, not 30%. Repairs, burglar or warning-only alarms and homeowner jobs are usually outside.

• How do I verify a CIS subcontractor?

  Verify a new CIS subcontractor online or through CIS software before you pay them. The details you need, the verification number, and the 2-year rule.

• Is a CIS subcontractor employed or self-employed?

  CIS only applies to people who are self-employed under the contract. If the terms make you an employee, PAYE applies instead. How status is decided and checked.

• Is my CIS number the same as my UTR?

  In practice, yes. GOV.UK gives subcontractors no separate CIS number: contractors verify you with your 10-digit UTR, National Insurance number and name.

• What does unmatched mean when a contractor verifies me under CIS?

  Unmatched means HMRC could not find a CIS registration for the details your contractor gave, so 30% is taken. The three outcomes and how to fix a mismatch.

• What is a CIS tax month?

  A CIS tax month runs from the 6th of one month to the 5th of the next. The 2026-27 dates, when your statement is due, and why it matters when you check CIS.

• What is the CIS monthly return deadline?

  CIS monthly returns are due by the 19th after each tax month ends, with payment by the 22nd. The 2026-27 dates, nil return rules and late penalties.

Tax, National Insurance and Making Tax Digital

What you actually owe, the expenses you can claim and how CIS fits Making Tax Digital.

• Can I claim the cost of paying a labourer or subcontractor?

  Yes. Paying a labourer or subcontractor for your business is an allowable cost. If it is construction work, CIS rules apply too. Here is how to claim it.

• Can I claim travel from home to site as a subcontractor?

  Often yes. If you work from home at a run of temporary sites, HMRC's manual allows home-to-site travel. Daily trips to one fixed workplace are commuting.

• Do CIS subcontractors pay National Insurance?

  Yes, Class 4 on profit over £12,570, paid through your tax return. 2026-27 rates, how the CIS deduction covers it, voluntary Class 2 and a worked example.

• Does Making Tax Digital apply to CIS subcontractors?

  Yes, if you are a sole trader. CIS pay counts before deductions and costs, so £25,600 in the bank can mean MTD from 6 April 2027. How CIS works inside MTD.

• How much tax does a CIS subcontractor pay?

  CIS subcontractors pay Income Tax and Class 4 National Insurance on profit, not the 20% deducted. 2026-27 worked examples at £25,000, £45,000 and £85,000.

• How much tax does a self-employed labourer pay?

  In 2026-27 a self-employed labourer pays 20% tax and 6% National Insurance on profit over £12,570. CIS takes 20% of pay in advance, so many get some back.

• Is my turnover before or after CIS deductions?

  Before. Your turnover is your full pay before CIS deductions, tested for Making Tax Digital and VAT. The gross payment status test also takes off materials.

• What changed in CIS in 2026?

  From 6 April 2026: CIS fraud rules and a 5-year gross status ban, nil returns back for contractors, HMRC error letters, and MTD for subcontractors.

• What expenses can a CIS subcontractor claim?

  CIS subcontractors can claim tools, van costs or 55p a mile, protective gear, the business share of their phone and more. What counts for 2026-27.

• What is self-billing for CIS subcontractors?

  Self-billing means your contractor writes your invoice. The VAT rules in Notice 700/62, how it fits with your CIS statement, and what to check each month.

Questions people ask