Paying tax as a CIS contractor is very simple with most people having 20% deducted from each pay check towards income tax and National Insurance Contributions.

However, it’s worth remembering that it may be possible to boost your income by finding out if you can claim allowable business expenses such as specialist clothing, travel and equipment through your self-assessment tax return. We are now processing tax returns for CIS contractors for the 2018/19 financial year, so if you haven’t already completed your self-assessment tax return, get in touch and let us help you.

To check if you are eligible for a tax rebate, you have to submit a self-assessment tax return detailing your income and business-related expenses. When you complete your tax return, HMRC will calculate the tax you have already paid throughout the year, offset any expenses you have claimed, and then will determine whether you owe any more tax or not. In our experience a more likely outcome is that you receive a tax rebate due to overpaying during the year. It’s not unusual for this to lead to rebates of £1,500 – £2,500 for a typical CIS worker.

What expenses can a CIS worker claim?

Here we explain in detail what expenses you can claim as a CIS worker but broadly speaking allowable expenses will include:

• Tools, equipment and clothing.
• Capital expenses like laptops, phones and vehicles (possibly fuel, insurance and road tax if it’s a business use-only vehicle).
• Travel and subsistence.
• Administrative costs such as stationery, insurances and membership of professional bodies.

How to claim tax relief on business expenses

To claim tax relief, you will need to detail all your business-related expenditure in your Self-Assessment Tax Return.  The tax return must be filed and paid online by 31^st January (or the preceding 31^th October if you’re doing a paper-based return).  However, there’s no need to wait for the deadline.  Tax returns for 2018/19 can be filed now.

While the Self-Assessment process is not complicated, many CIS contractors make use of our specialist contractor accountants to ensure their return is completed correctly and on time. This not only gives peace of mind by ensuring compliance, it also means that we will ensure the paperwork is right first time, so any rebate due will be paid without delay.

Find out more

Find out more about our self-assessment tax return service for CIS workers or get in touch on 01244 684700.