Advice for CIS subcontractors
How CIS deductions work, what gross payment status means, and how to claim back what you're owed.
This is general information, not tax, legal or financial advice for your own situation. See our Terms of Service for what BusyBee Hub does and doesn't do.
How CIS deductions work
A contractor deducts 20% from your labour if you're registered under CIS, or 30% if you're not; materials aren't deducted from. They pay HMRC the deduction on your behalf and give you a monthly statement showing what was taken, which is the record you'll need when it comes to filing your tax return at year end.
Gross payment status
- What it means
- No deduction at all; you handle the tax yourself through Self Assessment
- To qualify
- A track record of paying your own tax on time
Claiming back what you're owed
Every CIS deduction counts as tax you've already paid, so it comes off your Self Assessment bill; if it adds up to more than you owe, HMRC refunds the difference. Keep every contractor's statement; it's the evidence behind the figure you claim.
Need the how-to?
How to see exactly what contractors have deducted, and claim it back at year end.
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