Norton Bridges – Construction Industry Scheme (CIS) Accountants – London

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Whether you’re a first-time claimant or a seasoned subcontractor, this page answers the most common questions we receive about the Construction Industry Scheme (CIS), tax refunds, our fees, and the process of working with Norton Bridges. If you don’t find what you’re looking for, call us on 020 8424 8464 or email accountants@nortonbridges.co.uk.

About the Construction Industry Scheme (CIS)

In the Construction Industry Scheme (CIS), contractors deduct money from subcontractors‘ payments and pass it on to HM Revenue and Customs (HMRC). Subcontractor deductions count as advance payments towards the subcontractor’s taxes and National Insurance (NI).

Contractors must register for the scheme. Subcontractors are not required to register, but if they aren’t, deductions are taken from their payments at a higher rate.

The rate at which CIS deductions are taken depends on whether you are registered with HMRC:

  • 20% — the standard rate applied to registered subcontractors
  •  30% — the higher rate applied to unregistered subcontractors
  • 0% (gross payment status) — no deductions taken; available to subcontractors who meet HMRC’s turnover and compliance criteria

If you are currently being deducted at 30%, registering as a subcontractor is a simple step that will immediately increase your take-home pay and reduce the amount of tax you overpay

CIS covers most work carried out in the UK construction industry, including: building, alterations, repairs, decorating, civil engineering, demolition, installation of heating or lighting systems, and site preparation. Some activities, such as architecture, surveying, carpet fitting, and delivering materials, fall outside the scheme.

A contractor is a business or individual that pays other workers (subcontractors) to carry out construction work. A subcontractor is any individual or business hired by a contractor to do that work. It is possible to be both. For example, if your business hires other trades while also working directly for larger contractors.

Claiming Your CIS Tax Refund

You can claim your CIS tax refund once the tax year has ended on 5th April each year. So for work carried out between 6th April 2025 and 5th April 2026, you could begin the claim process from April 2026 onwards.
There is one exception: if you are leaving the UK permanently or are certain you will carry out no further work in the current tax year, you may be eligible to make an ‘In Year’ Repayment Claim before the year ends. Contact us to discuss whether this applies to yo

The size of your refund depends on several factors, including your total earnings for the year, the deductions taken by your contractors, your personal tax allowance, and any allowable business expenses you can claim.

The best way to get an accurate estimate is to contact us. We’ll assess your situation.

As a self-employed CIS subcontractor, you can claim expenses that were incurred wholly and exclusively for business purposes. Common allowable expenses include:

  • Tools, equipment and work materials (that you purchased yourself, not supplied by the contractor)
  • Vehicle costs — mileage, fuel, insurance and repairs for work-related travel
  • Protective clothing and workwear (e.g. boots, hi-vis jackets, hard hats)
  • Mobile phone costs used for work
  • Training and professional development directly related to your trade
  • Accountancy fees (including our fee for preparing your return)
  • Any other costs you paid from your own pocket to carry out your work

Claiming all allowable expenses reduces your taxable profit, which in turn increases your refund. Many subcontractors miss out on hundreds of pounds each year by not claiming everything they are entitled to.

Once your Self Assessment return has been submitted electronically to HMRC, the standard turnaround time is approximately 2 to 3 weeks. However, this can vary. HMRC currently estimates that around 1 in 20 refunds are subject to in-depth security checks, which can delay payment. We will keep you informed and do everything we can to expedite your refund.

You can currently claim CIS refunds for the last 4 tax years. However, this window shrinks with each year that passes -you permanently lose the ability to claim the oldest year’s refund every April.

Even if you are not due a refund for older years, HMRC may still require outstanding Self Assessment returns to be filed and penalties can apply for late submission regardless of whether tax is owed.

HMRC usually transfers the refund directly to Norton Bridges as your authorised tax agent. Once received, we deduct our fee and pay the balance to you. You can choose to be paid by BACS bank transfer or by cheque.

Our Fees & How the Process Works

Our standard fee for preparing a CIS Self Assessment tax return is £210 + VAT. Unlike many tax refund companies, we do not take a percentage of your refund — our fee is always a fixed amount, regardless of how large or small your refund is.

There is no upfront payment. Our fee is deducted from your refund once it has been received into our client account, so you pay nothing unless we secure money for you.

The process is straightforward and we handle everything on your behalf:

  • 1. You contact us — by phone, email or the enquiry form on our website
  • 2. We gather the information we need — your income details, CIS statements (if available), and any relevant expenses
  • 3. We prepare your Self Assessment return and send it to you for review and approval
  • 4. We submit the return to HMRC electronically on your behalf
  • 5. HMRC processes your refund and pays it to us as your authorised agent
  • 6. We deduct our fee and pay the balance to you by BACS or cheque

Most clients find the whole process takes very little of their time — we do the heavy lifting.

No. While we are based in Stanmore, North London, we work with CIS subcontractors across England, Wales and Scotland. Everything can be handled remotely by phone, email and post. You do not need to visit our office at any point.

Deadlines, Penalties & Outstanding Returns

The key deadlines for each tax year are:

  • 31st October — deadline for paper-based returns
  • 31st January — deadline for online returns (the following year)

For example, for the 2023–24 tax year (ending 5th April 2024), the online deadline is 31st January 2025.

Missing the online deadline triggers an automatic £100 penalty. Additional daily penalties of £10 per day can apply after 3 months, rising further at 6 and 12 months. Interest is also charged on any tax paid late.

Don’t panic. We deal with late filing situations regularly. The penalties for late filing are fixed regardless of how late you are filing so there is no benefit in delaying further. The sooner you act, the sooner your liability is capped and any refund can be processed.
Contact us and we will assess where things stand, file your outstanding returns as quickly as possible, and help you get your tax affairs fully up to date.

Yes. Every CIS subcontractor who is self-employed and earning above the personal allowance is required to file a Self Assessment return – regardless of whether they expect to owe money or receive a refund. Many subcontractors assume they only need to file if they owe tax, which is a costly misconception. The refund cannot be processed without a filed return.

Special Circumstances

Yes, in most cases. If you have lived and worked in the UK during the relevant tax year and earned above the tax-free personal allowance, you are likely entitled to a refund of some of the tax deducted even if you are not a UK citizen.

The exact amount depends on your residency status, your total UK earnings, and how long you were in the UK during the tax year. Non-residents are generally not entitled to the full UK personal allowance, which affects the size of the refund. However, many non-UK citizens, including EU nationals and Irish workers in the UK construction industry, successfully claim significant refunds each year.

Contact us to discuss your specific situation and we will advise you on what you are entitled to claim.

This is very common and nothing to worry about. We deal with lost or missing CIS statements regularly. We will liaise with your contractors and HMRC on your behalf to obtain the information needed to prepare your return.

Please note that contractors are not legally obliged to provide this information to us directly, so in some cases we may need you to contact them yourself or formally authorise them to speak with us. We will guide you through this if it applies.

Gross payment status means HMRC approves you to receive your full payments from contractors without any CIS deductions. Rather than having 20% deducted throughout the year and reclaiming it later, you receive 100% of your earnings and pay your tax directly through Self Assessment.

To qualify, HMRC generally requires that you:

  • Have been self-employed in construction for at least 12 months
  • Have a turnover above a certain threshold (£30,000 for sole traders; higher for partnerships and companies)
  • Have a good compliance record with HMRC — all returns filed and payments made on time

If you think you might qualify, speak to us. Achieving gross status can significantly improve your cash flow, as you are no longer waiting to reclaim overpaid tax at the end of each year.

These are three different types of tax documents:

  • P60 — given to employees at the end of each tax year, summarising total earnings, tax paid and National Insurance contributions for that year
  • P45 — given to employees when they leave a job, detailing their earnings and tax to date in that tax year
  • CIS certificate (or CIS statement) — unique to the Construction Industry Scheme; issued monthly by your contractor, detailing the gross amount paid to you, any material deductions, and the tax deducted under CIS

As a CIS subcontractor you should receive a CIS statement from each contractor you work for, for each month they pay you. These are the key documents used to prepare your tax return.

To prepare your return, we will need details of all income you received during the tax year, including:

  • All CIS statements from your contractors
  • Details of any employment income (if you also worked as an employee during the year)
  • State benefits received
  • Pension income
  • Rental income
  • Bank or building society interest (including joint accounts)
  • Share dividends
  • Details of any pension payments you made during the year

You must disclose all sources of income — not just your CIS earnings. It is your legal responsibility to ensure your return is complete and accurate.

Don’t have all of this to hand? Don’t let that stop you from getting in touch. We’re experienced in working with incomplete records and will help you gather what’s needed.

Still Have Questions?

If you still have questions about the Construction Industry Scheme (CIS), then read our Introduction To CIS which has links to further detailed articles.

If your question isn’t answered above, we’re happy to help. Get in touch with the Norton Bridges team:

  • Phone: 020 8424 8464
  • Email: accountants@nortonbridges.co.uk
  • Or use the contact form

We’ve been helping CIS subcontractors reclaim overpaid tax for over 17 years. There’s no obligation to proceed once you’ve spoken with us – we’ll give you a clear picture of what you’re owed before you commit to anything.