30. April 2026

CIS Tax Refunds 2025/2026: How Subcontractors Can Claim Early and Boost Cash Flow

For CIS subcontractors, the start of the 2025/2026 tax year presents a valuable opportunity: claiming your tax refund early.

Under the UK’s Construction Industry Scheme (CIS), contractors deduct 20% (or 30% if unregistered) from your payments before you receive them. However, these deductions are calculated on your gross income—not your actual profit—meaning many subcontractors overpay tax throughout the year.

Once your tax return is submitted, HM Revenue and Customs recalculates your true liability, offsetting CIS deductions against your final bill. If too much tax has been paid, a refund is issued.

The key advantage? You don’t need to wait until the January deadline. As soon as the tax year ends on 5 April 2026, you can file immediately. Early submission often means faster access to refunds—typically ranging from £500 to £3,000 depending on income and expenses.

For subcontractors, early claims can significantly improve cash flow, particularly in a sector where upfront costs are common. Ensuring your records, CIS statements, and allowable expenses are accurate is crucial to avoid delays.

If you’re a CIS worker, acting early isn’t just efficient—it’s financially smart.