Essential Guide to CIS Contractor Rebates

19 February 2026

1. What CIS is

The Construction Industry Scheme (CIS) is a UK tax framework for construction work. Contractors deduct tax from payments to subcontractors and pay it directly to HMRC. If too much tax is deducted during the year, subcontractors can claim a rebate.

2. Who is eligible

You must be registered under CIS as a subcontractor.
Your contractor has been deducting tax under CIS.
You’ve overpaid tax (for example, if your deductions were higher than your actual liability).

3. How rebates are calculated

The rebate is the difference between the tax deducted and the actual tax you owe.
Expenses or allowable costs may increase your rebate.
HMRC or your accountant can help ensure all eligible deductions are considered.

4. Timing of refunds

Rebates can be claimed after the tax year ends, but some accountants can help you access refunds as early as 14 days from 6 April, the start of the new tax year.
Speed depends on whether your rebate exceeds fees and standard processing times.

5. How fees work

Many accounting firms deduct their fees directly from the rebate, so no upfront payment is needed.
This makes claiming your rebate easier, especially for smaller subcontractors who want fast access to funds.

6. Benefits of using an accountant

They handle HMRC paperwork and calculations, reducing errors.
They ensure you get maximum rebate by including all eligible costs.
You get a dedicated account manager to guide you and answer questions.

7. Common pitfalls

Not submitting claims in time.
Missing eligible deductions (like business expenses).
Relying on contractors to handle everything without checking your records.

Bottom line

CIS contractor rebates are designed to return overpaid tax to subcontractors. Using a specialist accountant like Evans Entwistle, can make the process faster, easier, and more accurate, often with no upfront cost.