How much CIS tax refund for 2008-2009?

This table shows the approximate CIS tax refund that can be expected when the 2008/09 tax return is prepared for a typical CIS (Construction Industry Scheme) subcontractor.

Construction tools

Turnover	Tax refund
£	£
2,000	400
4,000	800
6,000	1,200
8,000	1,600
10,000	1,900
12,000	1,830
14,000	1,660
16,000	1,610
18,000	1,410
20,000	1,270
22,000	1,250
24,000	1,050
26,000	850
28,000	800
30,000	675
35,000	235
40,000	( 115)
45,000	( 360)
50,000	(1,170)

Tax information and assumptions

Due to the complexity of the tax system and the varying circumstances of different CIS subcontractors, a few simplifying assumptions are necessary:

The figures are for the tax year ended 5 April 2009. No payments on account of tax have already been made for that year.

All of the income was taxed at 20% under CIS, and there was no other type of income (eg, rent, or a salary). Except at the lowest income levels, any other income would reduce the refund by up to 28% of that non-CIS income.

Turnover is the total amount earned before all expenses, and before the CIS deduction.

Other expenses are at an average level for each amount of income, for a one-person business. The materials expense is under £300.

A vehicle was used to travel around the local area on most working days, with the total running cost (including insurance and depreciation) for the year between £2,000 and £4,500, increasing with the level of income.

There were no vehicles bought in the year, and no sales of vehicles at a large gain or loss.

Where it is likely that there will be extra tax to pay, the CIS refund is shown in brackets (to indicate a negative number).

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