Can CIS subcontractors get a tax refund?

Yes. GOV.UK says CIS deductions are set against the subcontractor tax and National Insurance bill. If the deductions are more than the final amount due, HMRC can repay the excess.

Is CIS deducted from profit or turnover?

Contractors deduct CIS from payments under the scheme, usually after excluding VAT and qualifying materials. For Self Assessment, sole traders record the full invoice income and the CIS deductions separately.

Does this calculator work for limited companies?

The main refund estimate is for sole traders and partners. Limited company subcontractors usually set off CIS deductions through payroll using EPS and FPS submissions, then claim remaining excess after the tax year if eligible.

Do CIS deductions stop payments on account?

Not always. Payments on account depend on the Self Assessment rules, including the amount owed and how much was paid outside Self Assessment. This calculator gives an indicative warning, not a final HMRC statement.

Tax year: 2025/26 & 2026/27Jurisdiction: UK CIS subcontractorsLast verified: July 26 2026

CIS Tax Rebate Calculator

Q: When do I get a CIS refund?

Sole traders usually claim through Self Assessment after the end of the tax year. A qualifying individual may request an in-year repayment on form CIS40 once the accounting period that determines the year profit has ended and HMRC conditions are met.

Estimate whether your CIS deductions are likely to produce a Self Assessment refund or leave more tax to pay. This page is for self-employed subcontractors and partners who have CIS deducted during the year, then claim credit for those deductions against Income Tax and Class 4 National Insurance.

Estimate your year-end CIS refund

Enter your annual CIS income, expenses and deductions. For a single invoice deduction, use the CIS Tax Calculator instead.

Tax year

Subcontractor type

Income Tax region

Expense method

The trading allowance has eligibility restrictions and cannot be used for partnership income.

Gross CIS income

Use the full invoice income before CIS deductions.

CIS deducted by contractors

Use your monthly payment and deduction statements.

Allowable business expenses

Other tax detailsOptional — add other income, tax reliefs or payments already madeAdvanced

Leave these at zero for a straightforward CIS-only estimate. Enter annual figures for the same tax year.

Other income and PAYE tax

Other taxable income

Employment, pension or other non-dividend income before tax.

PAYE tax already deducted

Gift Aid and personal pension payments

Gift Aid paid by you

Relief-at-source pension paid by you

Enter the amount you actually paid. The calculator grosses it up at the 20% basic rate. Do not include workplace net-pay or salary-sacrifice contributions here.

Self Assessment payments and charges

Payments on account already paid

Student loan / other SA charges

Enter the amount from another calculation or your tax-return software.

Show possible next-year payment on accountThis is a cash-flow warning only. HMRC calculates the actual statement.

Refund driver

Expenses

The more allowable costs you have, the lower your profit and the more likely CIS deducted at source exceeds the final bill.

Tax credit

CIS paid

CIS is not an extra tax. It is credited against your Self Assessment tax and National Insurance.

Watch point

POA

Payments on account can affect January cash flow even when the year-end balancing position looks manageable.

A CIS rebate is really a year-end tax balance

The word "rebate" is useful shorthand, but it can make CIS sound like a separate pot of money. It is not.GOV.UK explainsthat sole traders and partners still work out the correct tax and National Insurance for the business, then HMRC takes off the deductions contractors have already made.

That is why two subcontractors with the same CIS deducted can end up with different results. One may have high van, tools, insurance and accountancy costs, so taxable profit is lower and a refund is due. Another may have fewer expenses, PAYE income on the side, student loan repayments or payments on account, so there is still something to pay.

Tax return item	How it affects the refund
Gross CIS income	Included as business turnover before deductions.
Allowable expenses	Reduce taxable profit.
CIS deducted	Credited against tax and NI.
Other income	Can use tax bands and reduce the refund.
Gift Aid and personal pension payments	Can reduce adjusted net income and extend the relevant tax bands.
Payments on account	Can change the Self Assessment statement balance.

How this CIS rebate calculator works

Inputs used

Tax year and Income Tax region.
Gross CIS income, CIS tax deducted and allowable business expenses.
Other taxable income, PAYE tax already deducted and payments on account already paid.
Optional net Gift Aid and relief-at-source pension payments, plus manual student loan or other Self Assessment charges.

Calculation method

Calculate taxable business profit from CIS income minus either actual expenses or the GBP 1,000 trading allowance.
Add other taxable income, gross up qualifying Gift Aid and relief-at-source pension payments, and apply the Personal Allowance taper using adjusted net income.
Apply England/Wales/Northern Ireland or Scottish Income Tax bands, including the appropriate extension for qualifying payments.
Calculate Class 4 National Insurance on self-employed profit above the Lower Profits Limit.
Compare Income Tax, Class 4 NI and manual charges with CIS deductions, PAYE tax deducted and payments on account already paid.

Assumptions

The main estimate is for sole traders and individual partners, not limited companies.
Other income is treated as non-savings, non-dividend income for band purposes.
Gift Aid and relief-at-source pension fields accept the net amount actually paid and are grossed up at the 20% basic rate.
Class 4 National Insurance is included; voluntary Class 2 National Insurance is not charged automatically.
Payments on account are shown as an indicative cash-flow warning only.

What this does not cover

It does not check whether a payment should have been inside CIS. Use the CIS Tax Calculator for invoice deduction checks and GOV.UK CIS guidance for scope.
It does not calculate limited company payroll set-off, Corporation Tax or end-of-year company repayment claims. Use GOV.UK limited-company CIS refund guidance if you trade through a company.
If your expenses create a trading loss, the calculator reports the loss but does not choose or calculate a loss-relief claim against other income, earlier years or future profits.
It does not calculate capital allowances, basis-period transition, VAT, Making Tax Digital, student loan plan rules, High Income Child Benefit Charge or benefit entitlement.
It does not replace Self Assessment software, HMRC calculation, or professional advice where records are incomplete or multiple trades are involved.

Worked example: why a rebate appears

Imagine a subcontractor has GBP 45,000 of gross CIS income and contractors have deducted GBP 7,200 across the year. They also have GBP 9,000 of allowable expenses for tools, van costs, insurance, phone, accountancy and other business costs.

The taxable profit is GBP 36,000 before the Personal Allowance. On a simple England/Wales/Northern Ireland estimate with no other income, the Income Tax and Class 4 National Insurance bill is lower than the GBP 7,200 already withheld. That difference is the likely refund, before HMRC checks the return and any existing statement balance.

If the same person had PAYE work, fewer expenses or student loan deductions through Self Assessment, the refund would shrink. If they had made payments on account already, the statement could move further towards a refund.

Records to pull together before claiming

Keep every monthly payment and deduction statement from contractors. GOV.UK says contractors give these to help with accounting, and HMRC can ask for evidence if deductions do not match records.

Also keep invoices, receipts, mileage logs, finance agreements, insurance documents and bank records. The calculator lets you enter one total expense figure, but your return still needs a real basis for that total.

If you are claiming after the tax year has ended, the normal route is your Self Assessment tax return. If you are considering an in-year claim, HMRC says an individual sole trader may use form CIS40 only once the accounting period that determines the year profit has ended and the relevant conditions have been met. Partnerships use a separate CIS41 procedure.

Practical refund checks before you file

Use gross income, not net bank receipts

For Self Assessment, record the full invoice income and the CIS deductions separately. Do not enter only the amount that landed in your bank.

Do not double count materials

If your contractor already excluded materials when deducting CIS, that does not stop you recording actual business costs correctly in your accounts.

Check side income

PAYE income, pensions and other taxable income can use up Personal Allowance or tax bands before your self-employed profit is taxed.

Separate company claims

Limited company CIS deductions are normally set off through payroll returns first. Do not treat them like an individual Self Assessment rebate.

Check before using the trading allowance

The allowance is an alternative to actual expenses, not an extra deduction. It is not available for partnership income and it can also be blocked for income from an employer or certain connected businesses.

Treat a trading loss separately

If allowable expenses are higher than income, the way the loss is used depends on the claim you make. The calculator identifies the loss but does not decide whether to use it now, carry it back or carry it forward.

CIS tax rebate FAQs

Why do CIS subcontractors often get refunds?

CIS is deducted from payments before your final business profit is known. Once expenses, Personal Allowance and National Insurance are calculated, the deductions may be more than the final bill.

What expenses can I include?

Only allowable business expenses. Common examples include tools, protective clothing, van running costs, business insurance, phone business use and accountancy fees, but the exact treatment depends on the facts and records.

When do I get a CIS refund?

After the tax year, sole traders normally claim through Self Assessment. An individual may be able to request an in-year repayment on form CIS40 once the accounting period determining the year profit has ended and HMRC's other conditions are met.

What if I also have PAYE income?

Enter the gross PAYE income as other taxable income and enter PAYE tax already deducted. This helps the calculator avoid treating your self-employed profit as if it had the whole Personal Allowance available.

Can a limited company use this rebate estimate?

Not for the main personal tax calculation. GOV.UK says limited company subcontractors claim CIS deductions through payroll set-off using EPS/FPS, with remaining excess handled after the tax year if eligible.

Official sources

Last verified: July 26 2026. Calculations are estimates based on the published rules and assumptions shown on this page.

GOV.UK CIS subcontractor: pay tax and claim back deductions - how sole traders, partners and limited companies claim or set off CIS deductions
GOV.UK CIS subcontractor overview - 20% and 30% deduction overview and advance-payment treatment
GOV.UK CIS 340 guide - detailed HMRC guidance for contractors and subcontractors, including deduction statements and repayment treatment
GOV.UK Income Tax rates and allowances - Personal Allowance, England/Wales/Northern Ireland rates and allowance taper
GOV.UK adjusted net income - grossing up qualifying Gift Aid and relief-at-source pension payments for adjusted net income
GOV.UK private pension tax relief - relief at source and additional relief for taxpayers above the 20% rate
HMRC HS342 Charitable giving (2026) - Gift Aid gross-up and higher or additional-rate relief
GOV.UK National Insurance rates and allowances - Class 4 National Insurance thresholds and rates for self-employed profits
GOV.UK trading allowance - GBP 1,000 trading allowance rules and expense alternative
GOV.UK Self Assessment payments on account - 31 January and 31 July payments on account rules
HMRC HS227 Losses (2026) - current-year and carried-forward trading-loss relief options and restrictions
HMRC in-year CIS repayment guidance - conditions and claim procedure for CIS40 and CIS41 in-year repayments
Scottish Government Income Tax rates and bands - Scottish non-savings, non-dividend Income Tax rates for 2025/26 and 2026/27

Related calculators

CIS Tax CalculatorCalculate deductions from sub-contractor pay under the Construction Industry Scheme.Self-Employed / Freelancer Tax CalculatorEstimate your tax and NI as a sole trader or freelancer.Take-Home Pay (PAYE) CalculatorCalculate your exact net salary after Income Tax and National Insurance.Pension Contribution Tax Relief CalculatorCalculate your effective cost of pension contributions after tax relief.