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How to Successfully claim CIS Refund for 2024/25: Let Us Help You Stay Compliant and Maximise Your Tax Rebate

How to Successfully claim CIS Refund for 2024/25: Let Us Help You Stay Compliant and Maximise Your Tax Rebate

As the 2024/25 self-assessment tax season approaches, it's important for those in the construction industry to ensure they are fully compliant with the Construction Industry Scheme (CIS). Whether you are a contractor or subcontractor, managing your tax return and ensuring accurate CIS deductions can be challenging. That's where we come in!

In this blog, we'll guide you through what’s new for the 2024/25 tax year, common issues CIS workers face, and how our expert accounting services can make your self-assessment tax return simple and stress-free.


1. What You Need to Know About CIS for the 2024/25 Tax Year

The Construction Industry Scheme (CIS) is a special set of rules for how payments between contractors and subcontractors in the construction industry are made and taxed. As a contractor or subcontractor, you're likely subject to tax deductions, and this can affect your self-assessment filing. Here's what's relevant for the upcoming tax year:

  • CIS Deductions: As a subcontractor, you’ll typically have tax deductions made by contractors from your payments. These deductions are paid to HMRC on your behalf. For 2024/25, if you're registered under CIS, you'll need to ensure that these deductions are accurately reported in your self-assessment tax return.

  • CIS Registration Changes: Make sure you're registered correctly under the scheme for the upcoming tax year. If you're a contractor, you must verify that your subcontractors are also registered with CIS to avoid higher deductions. For subcontractors, if you're not yet registered, it’s time to do so to ensure you don't face a 30% deduction rate on your payments.

  • New Rates for 2024/25: Although there are no major changes in the CIS rates for 2024/25, it’s essential to stay up-to-date with any changes in your deductions or reporting requirements. HMRC regularly updates its guidelines, so reviewing them ahead of filing your return can prevent errors.


2. Common Mistakes in CIS and Self-Assessment Filings

The CIS system is complex, and there are several common mistakes that many contractors and subcontractors make during self-assessment filings. Avoid these errors to prevent fines and penalties:

  • Not Claiming Back Overpaid CIS Deductions: Many subcontractors forget to claim back any overpaid CIS deductions when submitting their self-assessment return. If you’ve had more deducted than required, this can be refunded to you, so it's important to keep track of your payments and deductions accurately.

  • Misreporting Earnings or Deductions: Reporting your earnings and tax deductions from contractors correctly is critical. Errors can delay your refund or result in a penalty from HMRC. Always cross-check your payments and ensure deductions align with what was agreed under CIS.

  • Failing to Deduct the Correct Amounts for Materials: Sometimes, subcontractors incorrectly include the cost of materials in their CIS deductions. Remember, CIS only applies to labour costs, not materials, so separating these in your invoicing is key to ensuring accurate deductions.


3. How Our Accounting Services Can Help You with Your CIS Self-Assessment

Navigating CIS and filing your self-assessment tax return can be overwhelming. We’re here to help contractors and subcontractors in the construction industry stay compliant and ensure the process is hassle-free. Here’s how we can support you:

  • CIS Deduction Review & Claims: We’ll ensure that all your CIS deductions are correctly calculated and make sure you claim back any overpaid tax to maximise your refund.

  • Accurate Self-Assessment Filing: Our expert team will handle your self-assessment tax return from start to finish, ensuring all CIS-related deductions and expenses are correctly accounted for, reducing the chance of errors.

  • Avoiding Penalties: We’ll make sure your self-assessment is filed on time, and that you are fully compliant with the latest tax rules to avoid fines or interest charges.

  • Tax Planning & Savings: We understand the construction industry and will provide tailored advice on maximising allowable expenses and any tax reliefs available to you, such as for vehicle costs, tools, and other industry-specific deductions.


4. Why You Should Choose Sigma Accounting to File Your CIS Self-Assessment Return

  • Experience with CIS Returns: We specialise in working with contractors and subcontractors, ensuring your specific needs are met during the self-assessment process.

  • Expert Support All Year Round: Our services don’t stop at filing your tax return. We offer ongoing support, advice, and guidance on financial planning, tax deductions, and more.

  • Personalised Service: We understand that no two businesses are the same, so we provide a personalised approach to every client, ensuring that all your unique tax needs are met.


5. Take the Stress Out of Your CIS Self-Assessment Tax Return—Get in Touch Today!

Don’t leave your self-assessment tax return to the last minute—especially if you're working under the CIS. Let Sigma Accounting guide you through the process and ensure your tax filings are accurate, compliant, and optimised for savings.

Get in touch with us today for a FREE consultation, and let us take the stress out of your CIS self-assessment tax return for 2024/25.


Filing your CIS self-assessment tax return doesn’t have to be difficult. By working with Sigma Accounting, you can ensure that you meet all the necessary requirements for the 2024/25 tax year, avoid common mistakes, and maximise your tax position. Whether you're a contractor or subcontractor, we have the expertise to make your tax return process smooth and hassle-free.

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