CIS Tax Refunds

Welcome to CIS tax refunds.

This blog is here to help you claim your CIS tax refunds. Many CIS workers can claim their tax back while others might need to pay CIS tax back to HMRC. It is important for you to go through the following if you would like to make a CIS tax refund claim or if you think you could owe HMRC money.

CIS tax refunds apply to the construction industry scheme. In order to claim for CIS
you will need to know the following info. If you are unsure of any of the below you can click on the below link which will take you directly to the leading CIS tax Refunds Expert in the uk.

Click Here To Claim Your CIS Tax Refunds

CIS tends to be a complicated subject due to many factors, though you dont need to be concerned with this as this blog will set out how you can go about claiming your CIS Tax Refund.

The Construction Industry Scheme (CIS) sets out the rules for how payments to subcontractors for construction work must be handled by contractors in the construction industry.

The scheme applies mainly to contractors and subcontractors in the construction industry, however businesses or organizations whose main activity isn’t construction but have a high annual spend on construction may also count as contractors and fall under the scheme.

The Construction Industry Scheme (CIS) is a set of specif rules when it comes to handling payments made by contractors to subcontractors for the construction work they have done or are doing.

If your business works in the construction industry or does construction related work then it may need to register with HM Revenue & Customs (HMRC) as either a contractor or a subcontractor under CIS, this will help you when it comes to reclaiming CIS Tax Refunds.

Certain other businesses and organizations may need to register with HMRC as contractors if they spend more than a certain amount each year on ‘construction operations’ covered by the scheme. They may have to do this even if their main activity is nothing to do with construction.

This guide will help you decide if the work you do – or have done for you – is covered by CIS. If you advise businesses and organisations that are involved with construction work, it’ll help you decide whether or not they should register with HMRC and operate CIS.

Types of work and business structures covered by CIS

The following CIS Rules apply for those working in the Construction industry or perform work related to the industry.

• self-employed individuals working as sole traders
• partnerships
• companies
• limited liability partnerships (LLPs)

As well as traditional construction businesses like builders, the scheme can also apply to businesses like:

• labour agencies and staff bureaux
• gangmasters – or gang leaders
• property developers

Even if your business or organisation doesn’t do building work, it might still be a mainstream contractor or HMRC may treat it as a ‘deemed contractor’ – and require it to register with CIS – if it spends more than an average of £1 million a year on construction operations over a three year period. The types of businesses and organisations that this could apply to include:

• some large businesses
• housing associations
• other ‘arms length’ management organisations (ALMOs)
• local authorities
• government departments
• other public bodies

If your business is based outside the UK, the CIS still applies if it does work in the UK – or UK territorial waters – that is covered by the scheme.

Businesses or other organisations whose work is covered by the CIS could be contractors, subcontractors, or both. HMRC use specific definitions of the terms contractor and subcontractor, so even if you don’t think of yourself as a subcontractor in the traditional sense you may still be covered.

What are construction operations?

CIS covers construction operations carried out in the UK. The rules of the scheme define the types of work that are classed construction operations. But as a general rule, the scheme includes almost any work that’s done to a:

• permanent building
• temporary structure
• civil engineering work or installation

Some examples of the types of construction work that are covered by the scheme include jobs like:

• site preparation
• general construction – bricklaying, roofing, plastering and so on
• alterations and extensions
• repairs and refurbishment
• decorating
• dismantling work
• demolition

The scheme defines ‘construction’ as a term with a broad meaning that includes:

• building things
• making things
• putting things together
• assembling things

So, construction work includes, for example, assembling prefabricated units and site facilities that have been made off-site.

CIS also uses specific definitions of terms like alteration, repair and extension. You can look up the definitions in HMRC’s booklet CIS340 ‘Construction Industry Scheme – guide for contractors and subcontractors’.

Work that can sometimes be construction work

There are some types of work that aren’t automatically treated as construction operations, but can be in certain situations. For example, tree planting and landscaping aren’t construction operations if they’re part of estate management or forestry work. But HMRC would treat them as work that’s covered by the CIS if they were done in the course of building a new housing development.

If you’re unsure about whether some work you do is covered by the scheme you should contact HMRC’s CIS Helpline.