CIS Tax Rebate Video has been provided by CANALITIX ACCOUNTANTS for CiS subcontractors to explain how to go about claiming any overpayment of income tax.
While most Clients require one-off CIS tax rebates, some contractors require us to manage their accounting and bookkeeping, PAYE, CIS, and VAT returns.
HMRC requires contractors to register for CIS and to verify subcontractors with HMRC to determine the correct CIS deduction rates.
CIS deductions are treated as advanced payments of Income Tax and National Insurance.
CIS Deduction Rates
Subcontractors registered with HMRC pay the standard 20% deductions, as opposed to the higher rate of 30% for unregistered subcontractors. In addition, some subcontractors are approved for gross payments where they have a history of filing and paying taxes on time.
CIS Tax Rebate
Subcontractors can apply for CIS rebates on their Self-Assessment tax returns. HMRC will refund any overpaid tax where the CIS deductions were greater than the actual tax liability for the tax year ended 5th April.
On average, we recover tax repayments of £1,500 per CIS subcontractor and our fees are only payable when the funds are recovered from HMRC.