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What is a CIS Tax Rebate?

A CIS tax rebate is a refund of tax deducted under the Construction Industry Scheme (CIS). Contractors deduct tax (usually 20% or 30%) from subcontractors’ payments and send it to HMRC. These deductions act as advance payments towards the subcontractor’s yearly tax bill.
If too much tax has been deducted compared to the actual liability, a refund becomes due. The rebate is calculated after submitting a Self Assessment tax return.
Many subcontractors receive refunds because expenses and allowances reduce their final tax bill.

Need to file your CIS tax return?