CIS tax refund: how to claim

Written for the 2026/27 tax year. Checked against GOV.UK on 6 October 2026.

Under the Construction Industry Scheme (CIS), a contractor takes a deduction from each payment to a subcontractor and passes it to HMRC. The deductions are advance payments towards your tax and National Insurance. If they come to more than you owe, you can claim the difference back. This guide explains how, for sole traders, partners and limited companies. It comes from Wainwrights Accountants in Bromborough, Wirral. We work with contractors and subcontractors across the UK.

CIS refunds at a glance

Who can claim a CIS tax refund?

A subcontractor whose CIS deductions for the tax year come to more than the tax and National Insurance they owe. The deductions are advance payments, not a separate tax, so the claim is for the amount overpaid. A tax year runs from 6 April to the following 5 April.

How you claim depends on how you trade. Sole traders and partners claim through Self Assessment. Limited companies use payroll during the year and make a claim to HMRC after it ends.

How do sole traders and partners claim a CIS refund?

Through your Self Assessment tax return, after the tax year ends. GOV.UK sets out the steps:

1. Send your Self Assessment tax return as usual.
2. Record your total pay before deductions were taken as income.
3. Record the total deductions contractors have taken as CIS deductions.
4. HMRC works out how much tax you owe and takes off the deductions.
5. If you are due a refund, HMRC pays the money back. If you still owe tax, you pay it by 31 January following the end of the tax year.

For the 2026/27 tax year the online return is due by 31 January 2028. You do not have to wait until then: a return can be sent once the tax year has ended on 5 April 2027.

If you stop trading, GOV.UK says you may be able to get a refund of deductions you have already paid this tax year, using the sole trader or partner claim form.

How do limited companies claim a CIS refund?

In two stages. During the tax year, the company sets its CIS deductions against what it owes HMRC through its payroll scheme. After the tax year ends, it claims a refund of anything left over. GOV.UK says not to use the Corporation Tax return for this, and that you may get a penalty if you do.

During the year. Send your Full Payment Submission as usual. At the same time, send an Employer Payment Summary showing the total CIS deductions for the year to date. HMRC takes the deductions off what you owe and you pay the balance. Deductions left over can be carried forward to the next period in the same tax year.

After the year. You can claim for a tax year once it has ended. For the past 6 tax years you can claim online or by post. You need to have sent all your Full Payment Submissions, Employer Payment Summaries and Company Tax Returns, and your monthly CIS returns if you are also a contractor.

HMRC first uses the deductions to pay any overdue PAYE or Corporation Tax. With what is left, you can get a refund or use it to pay VAT or an upcoming Corporation Tax bill.

A company can only claim before the tax year has ended if it has stopped trading, or if deductions were taken after it changed to gross payment status.

What records do you need for a CIS refund?

The monthly payment and deduction statements from every contractor you worked for. Each one shows what you were paid and what was deducted. Your contractor must give you a statement within 14 days of the end of each tax month.

A limited company also needs:

• its Full Payment Submission and Employer Payment Summary records
• its PAYE reference number and Corporation Tax unique tax reference
• the bank details for the refund
• the overpayment figure: total CIS deductions taken, minus the tax paid using them

GOV.UK says a company must keep a record of the CIS deductions it has used to pay its PAYE bill.

HMRC checks your figures against what your contractors have reported. If they do not match, it asks for copies of your statements and bank statements.

What if a contractor has not given you a statement?

Ask them for it, or for a replacement if you have lost one. If you think the figures are wrong, speak to the contractor. If you cannot get your statements at all, for example because the contractor has gone out of business, GOV.UK says to write to HMRC with your details and the contractor’s.

What should not have CIS deducted from it?

Deductions apply to your pay for the work, not to everything on the invoice. GOV.UK says contractors will not take CIS deductions from amounts you charge for:

• VAT
• materials that you have paid for directly
• plant hired for the job
• equipment which is now unusable, known as consumable stores
• manufacturing or prefabricating materials

Your contractor may ask for evidence, such as receipts. Without it, the contractor will estimate the cost of materials.

How long does HMRC take to deal with a CIS refund claim?

For limited company claims, GOV.UK says HMRC will usually respond within 8 weeks, and may ask for more information if a claim is incomplete or does not match its records. For refunds claimed through Self Assessment, GOV.UK gives no timescale. It says you may not get a refund if you have tax due in the next 45 days, for example a payment on account: the money is deducted from the tax you owe instead. It also has a tool to check when you can expect a reply from HMRC.

We can’t tell you what a refund will be, or whether you’re due one, until we’ve seen your figures.

How does Wainwrights help with CIS refunds?

For subcontractors, we register you for CIS, prepare your accounts and tax return, and claim back any deductions you’ve overpaid. To make the claim we need the deduction statements your contractors gave you and a record of your business expenses.

CIS is a service we provide, for contractors and subcontractors, and we quote for each client. See our CIS accountants page, or our sole trader accountant service and limited company accountants.

What do subcontractors ask about CIS refunds?

Can I get a CIS refund?

Yes, if your deductions come to more than the tax and National Insurance you owe for the year.

When can I claim my CIS refund?

After the tax year ends on 5 April. Sole traders claim through their Self Assessment tax return. Limited companies set their deductions against their PAYE bill through payroll during the year, then claim anything left over from HMRC once the year has ended.

Do I have to be registered for CIS to claim?

Registration is not what gives you the refund: the claim is for deductions that come to more than the tax you owe. Registration changes how much is deducted in the first place. Contractors must deduct 30% from unregistered subcontractors, against 20% once you are registered and can be verified.

Can a limited company claim CIS back on its Corporation Tax return?

No. GOV.UK says not to use your Corporation Tax return to pay tax with your deductions, and that you may get a penalty if you do. Deductions go through the company’s payroll scheme.

How far back can a limited company claim?

GOV.UK says that for the past 6 tax years a company can claim online or by post, and that claims for earlier tax years must be made by post.

Can Wainwrights claim my CIS refund for me?

Yes. Refund claims are part of what we do for subcontractors. Get a quote or book a free call and we will go through what you need.

Whether you are due a refund depends on your own income, expenses and deductions. To talk yours through with an accountant in Bromborough, get a quote or book a free call.