How much will my CIS tax refund be this year?

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.

Construction plans

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)

Looking for CIS tax refunds in 2009?

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).