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CIS Tax Returns -
File Your Construction Industry Tax Return with Ultra Tax Ltd

If you’re working under the Construction Industry Scheme (CIS), filing a Self Assessment tax return is a legal requirement after your first year of trading and every year after that. As a CIS contractor or subcontractor, you’ll need to complete your tax return by the end of the tax year in April and settle any outstanding taxes by the following January. Ultra Tax Ltd specialises in helping CIS workers accurately file their tax returns, ensuring that you claim all allowable expenses and minimise your tax liabilities.

CIS Tax Returns

What is a CIS Tax Return?

If you're working under the Construction Industry Scheme (CIS) as a contractor or subcontractor, you are required to submit a CIS tax return to HMRC. This return details your earnings, any CIS deductions, and allowable expenses for the financial year. Even though CIS deductions are made by your contractor throughout the year, you may still be owed a tax refund, especially if you have incurred work-related expenses like tools, travel, or uniform costs. Filing your CIS tax return ensures you stay compliant with HMRC regulations while maximising any potential tax rebates.

What Expenses Can I Claim for as a CIS Worker?

A key part of the Self Assessment tax return process is understanding which expenses you can claim. Many people working under CIS miss out on claiming all their allowable expenses, which can result in paying too much tax. If you're working in construction, you can claim a wide range of business expenses, such as:

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  • Work travel costs for getting to and from temporary job sites.

  • Essential tools and equipment required for your work.

  • Materials that are necessary for completing jobs.

  • General costs of running your business, like stationery, advertising, and office supplies.

  • Accountancy fees for professional tax and accounting services.

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By claiming these allowable expenses, you can reduce your taxable income and potentially increase your tax rebate.

Maximising Your CIS Tax Refund by Claiming Expenses

As a CIS worker, understanding and correctly claiming your expenses can significantly reduce your tax bill and even lead to a CIS tax refund. Expenses you incur as part of your construction work can be deducted from your earnings, lowering the amount of income you're taxed on.

Here's a breakdown of other essential expenses that can be claimed on your CIS tax return:

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  • Protective clothing and uniforms: If you need to buy and maintain work-specific clothing, such as safety boots or helmets, the cost of these items can be claimed as expenses.

  • Vehicle costs: While you can claim mileage for work travel, you may also be able to claim for the upkeep of your vehicle, including insurance, repairs, and servicing, as long as the vehicle is used for work purposes.

  • Subsistence costs: If you need to stay away from home for work, you can claim for accommodation, food, and drink expenses.

  • Professional training: Any training or certifications required to maintain your skills or comply with regulations, such as health and safety courses, are claimable.

  • Phone and internet bills: If you use your phone or internet for work purposes, even partially, you can claim a portion of those costs as expenses.

Understanding CIS Tax Return Deadlines

Filing your CIS tax return on time is crucial to avoid penalties from HMRC. For most CIS workers, the deadline for submitting your Self Assessment tax return is the 31st of January following the end of the tax year. This applies whether you’re filing your return online or on paper. Missing this deadline can result in fines and interest on any unpaid tax, so it’s essential to plan ahead.

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  • Tax year runs from 6th April to 5th April of the following year.

  • Paper tax returns must be submitted by 31st October.

  • Online tax returns must be submitted by 31st January.

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To avoid unnecessary penalties, make sure your records are organised, and all allowable expenses have been included in your tax return.

Penalties for Missing the CIS Tax Return Deadline

If you miss the CIS tax return deadline, HMRC will impose penalties, which increase the longer the delay. Here's a breakdown of the penalties for late filing:

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  • £100 initial fine if your tax return is up to 3 months late.

  • £10 per day fine for each additional day (up to 90 days) if it's 3 to 6 months late.

  • £300 fine or 5% of the tax due (whichever is higher) if the return is more than 6 months late.

  • Further penalties apply if the return is more than 12 months late.

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Even if you don’t owe any tax, failing to submit your CIS tax return on time can still result in fines. To avoid these charges, it’s important to file your return well before the deadline.

How Ultra Tax Ltd Helps You Meet CIS Tax Return Deadlines

At Ultra Tax Ltd, we understand how busy life can get, especially in the construction industry. Our team of tax experts works with you to ensure your CIS tax return is submitted accurately and on time. We’ll keep track of your CIS deductions, allowable expenses, and any potential tax rebates, making sure everything is submitted to HMRC before the deadline.

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By working with Ultra Tax Ltd, you’ll have peace of mind knowing that your tax return is handled by professionals, giving you more time to focus on your work.

How to Calculate Your CIS Tax Refund

If you're a CIS subcontractor, it's possible that you’ve overpaid tax throughout the year. Contractors deduct 20% tax from your payments as part of the Construction Industry Scheme, but this may not reflect your actual tax liability, especially if you have allowable expenses or a lower overall income. Calculating your CIS tax refund involves comparing the tax you've already paid to HMRC against what you actually owe, after deducting your expenses.

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To make things easier, you can use our Tax Rebate Calculator to get an instant estimate of how much tax you might be owed. This simple tool takes your income, expenses, and CIS deductions into account, giving you a quick idea of what your refund could be.
 

Steps to Calculate Your Refund:

  1. Total Your Income: Add up all your income as a CIS subcontractor for the tax year.

  2. Deduct Allowable Expenses: Subtract any allowable expenses, such as work tools, travel, and business costs, from your total income.

  3. Apply Personal Allowance: Don’t forget to apply the personal allowance, which allows you to earn up to a certain amount tax-free (currently £12,570 for the 2023/24 tax year).

  4. Compare with Tax Paid: Compare the total tax you’ve paid through CIS deductions to what you owe. If you’ve overpaid, you’ll be entitled to a CIS tax refund.

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At Ultra Tax Ltd, our team can help you calculate your refund accurately, ensuring you claim every eligible expense.

Common Mistakes to Avoid When Filing Your CIS Tax Return

Filing a CIS tax return can be complex, and mistakes are common. Here are some of the key errors to watch out for:

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  • Missing Expenses: Failing to claim allowable expenses, such as tools or travel, could mean you overpay tax.

  • Incorrect Tax Code: Being on the wrong tax code can result in either underpayment or overpayment of tax.

  • Late Filing: Submitting your tax return after the deadline can lead to penalties.

  • Inaccurate Records: Not keeping proper records of income and expenses can make it harder to file correctly.

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Avoid these pitfalls by using Ultra Tax Ltd’s expert services. Our accountants ensure that your tax return is accurate, timely, and maximises your refund.

See how Ultra Tax Ltd can help you with your CIS Tax Returns

Looking for more than just CIS Tax Returns?

At Ultra Tax Ltd, we offer a variety of accounting services, from self-assessment tax returns to payroll management, tailored to meet the specific needs of construction workers and businesses. Explore how our full suite of services can support your financial well-being.

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