How much CIS tax refund?

This table shows the approximate CIS tax refund that can be expected when the tax return for 2014-15 is submitted for a typical self-employed CIS (Construction Industry Scheme) subcontractor.

Turnover Typical profit Tax refund
5,000 2,000 1,000
10,000 6,250 2,000
15,000 11,150 2,352
20,000 15,450 2,105
25,000 19,850 1,829
30,000 24,100 1,597
35,000 28,900 1,205
40,000 33,400 900
45,000 38,400 450
50,000 43,400 -254
55,000 48,400 -1,354
60,000 53,400 -2,454

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 2014. No payments on account of tax have already been made for that year.

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

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.

The materials expense is under £300 (ie, the subcontractor is not responsible for buying a lot of materials for his work).

Other expenses are at an average level for each amount of income, for a one-person business.

There were no vehicles bought or sold in the year.

All of the income was under CIS, and there was no other type of income in the year (for example, employment income). Except at the lowest income levels, any other income would reduce the refund by up to 30% that non-CIS income.

Where it is likely that there will be extra tax to pay, the refund is shown as a minus number.

One Comment (oldest first)

  1. Aston


    I am ceasing self employment and have to do a tax return now.

    I will be owed a refund…..will this be processed by HMRC now or will they wait until the end of the tax year and process it in the usual time frame?

    Regards, Aston.

    1 December 2015