Understanding CIS Deductions — A Complete Guide for Construction Workers in the UK

If you work in the UK construction industry as a subcontractor, you’re probably familiar with the Construction Industry Scheme (CIS). But do you know how to register, reduce deductions, and claim refunds? This guide covers everything you need to know — and how Audit Consulting Group can help you get the maximum refund.

What is the CIS?

The CIS is a scheme set up by HMRC requiring contractors to deduct money from a subcontractor’s pay and send it directly to HMRC as advance tax.

Who Must Register?

• Subcontractors: Register to reduce deductions from 30% to 20%
• Contractors: Must register before hiring subcontractors

CIS Deduction Rates

• Registered subcontractors: 20%
• Unregistered: 30%

How to Register for CIS

1. Go to HMRC’s website and register as self-employed
2. Apply for CIS registration using your UTR
3. Receive confirmation and start working under reduced deduction rate

How to Claim a CIS Refund

At the end of the tax year:

• Submit your self-assessment return
• Declare CIS deductions already paid
• HMRC will calculate your refund (often hundreds or thousands of pounds!)

Mistakes to Avoid

• Not keeping accurate records
• Missing self-assessment deadlines
• Forgetting to claim deductions

Why Subcontractors Lose Money

• They don’t file on time
• They don’t claim eligible expenses
• They pay higher deduction rates due to not registering

How Audit Consulting Group Maximises Your Refund

• We ensure every deduction and expense is accounted for
• We file your return accurately and on time
• We deal with HMRC for you

Additional Services We Offer:

• CIS registration support
• Appeals and penalty handling
• Ongoing tax planning for construction workers