If you're a subcontractor working under the Construction Industry Scheme (CIS), there's a good chance you may be due a tax refund when the 2024/25 tax year ends. This guide explains when to expect a refund, how it works, and what HMRC might do if they query your claim. --- 🔍 Why Many CIS Subcontractors Receive a Refund Under CIS, contractors deduct 20% tax from your payments before you receive them (or 30% if you’re not registered). These deductions are sent to HMRC and counted as advance tax payments. But often, the deductions taken exceed the actual tax you owe, because: You can claim the personal allowance (up to £12,570 for 2024/25) You may have had periods without income You can deduct business expenses (tools, materials, travel, phone, insurance, etc.) Once your tax return is submitted, HMRC compares your actual tax liability with what’s been deducted – and if you’ve overpaid, they’ll issue a refund. --- ✅ You’re Likely to Get a Refund If: You are a sole trader under CIS You’ve

As a sole trader in the UK construction industry, understanding what expenses you can legally claim is essential for managing your tax bill and keeping your business financially healthy. Whether you're laying bricks, fitting kitchens, or managing a team of subcontractors, knowing which costs are deductible can make a big difference to your bottom line. This guide outlines the key allowable expenses you can claim as a construction professional, helping you stay compliant with HMRC while making the most of your hard-earned income. 🔧 1. Tools & Equipment Purchase or hire of hand tools, power tools, ladders, scaffolding, etc. Repairs and replacements. Protective gear (e.g. helmets, boots, hi-vis jackets). 🏗️ 2. Materials & Supplies Raw materials like timber, cement, bricks, plaster. Consumables like nails, screws, sandpaper. 🚐 3. Vehicle Costs If you use a vehicle for business: Mileage allowance (45p per mile for the first 10,000 miles, 25p after). Or actual costs: fuel, insurance, road