This table shows the approximate tax refund that can be expected when the 2007/08 tax return is prepared for a typical CIS (Construction Industry Scheme) subcontractor.
| Turnover | Tax refund |
| £ | £ |
| 2,000 | 400 |
| 4,000 | 800 |
| 6,000 | 1,200 |
| 8,000 | 1,600 |
| 10,000 | 1,800 |
| 12,000 | 1,730 |
| 14,000 | 1,560 |
| 16,000 | 1,510 |
| 18,000 | 1,310 |
| 20,000 | 1,170 |
| 22,000 | 1,150 |
| 24,000 | 950 |
| 26,000 | 750 |
| 28,000 | 700 |
| 30,000 | 575 |
| 35,000 | 135 |
| 40,000 | ( 215) |
| 45,000 | ( 460) |
| 50,000 | (1,270) |
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 2008. 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.
Other expenses are at an average level for each amount of income, for a one-person business. The materials expense is under £300.
There were no vehicles bought in the year, and no sales of vehicles at a large gain or loss.
All of the income was 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 30% that non-CIS income.
Where it is likely that there will be extra tax to pay, the refund is shown in brackets (to signify a negative number).
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