Got some questions regarding your CIS (Construction Industry Scheme) tax refund? Have a read of our frequently asked questions to see how we can help.
When can I claim my CIS tax refund?
You can claim your tax refund once the tax year has ended on 5th April each year.
There are exceptions. If you are leaving the country or know you are not going to be carrying out any further work in the current tax year, you may be entitled to make an ‘In Year’ Repayment Claim.
How long will it take to receive my tax refund?
The HMRC standard response is that the turn around time on average is approximately 3 weeks, once the tax return has been submitted electronically. This is an approximation and for guideline purposes only.
Many refunds are received within 2 weeks but some take longer. HMRC security checks can slow the process down and they currently suggest that one in twenty undergo in depth security checks. We will do everything we can to ensure you get your repayment as soon as possible.
What are your fees?
Our current fee is £210 plus VAT. Where self employment covers a brief period or you commenced self employment near the end of the tax year, we will agree a reduced fee with you. If you have more than one year to prepare we may offer a discounted fee for multiple Self Assessment Returns.
Unlike other companies, we do not take a percentage of your refund. Our fees are always fixed, with no hidden costs or gimmicks. We do not take an upfront payment and our fee will be deducted from your refund, once it has been received into our client account.
How far back can I claim?
You can only claim back 4 years of refunds. However, you are still required to submit Self Assessment Returns that are outstanding from previous years, if requested by HMRC. Prior to 4th April 2010 you could claim back 6 years of refunds. HMRC have the power to alter this, so it is in your interests to complete your Self Assessment Returns as soon as possible to receive the refund you may be entitled to.
What if I’ve lost my CIS statements?
Don’t worry, it’s our job to help you. We are used to this and understand that some documents can be lost or misplaced.
We will liaise with the contractors and HMRC on your behalf. However, contractors are under no obligation to send us the information, so we may need you to speak to them directly or give them the authority to speak to us.
How will I receive my tax refund?
Usually, HMRC will transfer the funds directly to us, your agent. You then have the option of being paid via BACS or cheque, after deduction of our fee. The choice is yours.
What is the deadline for claiming my tax refund?
The deadline for submitting your 2020 tax return electronically is 31st January 2021. If you submit a paper based return you have until the 31st October 2020. If you fail to submit your return using either method by 31st January 2021 you will be issued with a £100 fine.
In addition to the late filing penalty, daily penalties have been introduced this year – please refer to our blog article on fines within this site.
If, unfortunately, you miss the deadline, we are able to help to bring your tax affairs up to date.
What’s the difference between a P60, a P45 and a CIS Certificate?
A form P60 is a statement of earnings, tax and National Insurance contributions (NIC) given to all employees at the end of the tax year.
A form P45 details earnings and tax and is given to employees at termination of employment.
A CIS certificate is a unique tax form, provided monthly by the contractor to the subcontractor, detailing gross income, material deductions and tax deducted.
If I am not a UK citizen, can I get all my tax back?
Not necessarily. This will only apply if you have earned (after allowable expenses) less than:
• £5,225 (2007/2008)
• £6,035 (2008/2009)
• £6,475 (2009/2010)
• £6,475 (2010/2011)
• £7,475 (2011/2012)
• £8,105 (2012/2013)
• £9,440 (2013/2014)
• £10,000 (2014/2015)
• £10,600 (2015/2016)
• £11,000 (2016/2017)
• £11,500 (2017/2018)
• £11,850 (2018/2019)
• £12,500 (2019/2020)
If you have earned over these amounts in the relevant year, you may still be entitled to receive a tax refund, just not ALL the tax you paid.
What documents do I need in order to claim a tax refund?
We will require details of all income you have received in the year, including, but not limited to, state benefits, pensions, rental income, bank/building society interest received (including any from accounts held in joint names), and share dividends. We will also require details of any pension payments made – (company name, amount paid and frequency).
It is your responsibility to ensure you disclose ALL sources of Income to us.
If there are still any questions you may have, then send us a message via the contact form and we will respond to you as soon as possible.