CIS Tax Rebate is due when a construction industry scheme (CIS) subcontractor overpays income tax due to the fact that his/her CIS tax deductions are made without taking into account their tax-free annual allowance.

As part of their Self Assessment tax return, CIS subcontractors can obtain a repayment of income tax overpaid.  HMRC will refund any overpaid tax where the CIS deductions were greater than the actual tax liability for the tax year ended 5th April.

CANALITIX ACCOUNTANTS help CIS subcontractors to recover an average of £1,500 in overpaid income tax which is referred to as CIS tax rebate.

CIS rebates take approximately 2 weeks to recover after filing the subcontractor’s annual Self-Assessment tax return.

We do not charge an upfront fee for our CIS rebate service because we deduct our fees from the funds received from HMRC.

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.

CIS Tax Rebate Video