Construction Industry Scheme(CIS) Tax Refunds
What expenses are allowable
Expenses you incur "wholly and exclusively for the purposes of your trade". Typical expenses include tools, materials, safety equipment, payments to subcontractors and overnight temporary accommodation.
What about travelling costs
Commuting to an "ordinary workplace" is not considered a relevant expense. The rules for travel to a "temporary workplace", however are different. The definitions for a temporary workplace are not always clear. This is a subjective area and as always, it will depend on your personal circumstances.
I've lost some of my receipts
Can I still make a claim for these costs? In short, no! HMRC may ask to see proof of expenses recorded in your tax return and failure to provide support will result in HMRC not allowing the expense. If this happens, HMRC could charge interest and seek to charge penalties. Penalties can be anything up to 100% of the tax overclaimed.
How long does a CIS refund take
It can take up to 8 weeks (although it is usually much quicker). This depends on a number of factors outside of our control and mainly hinges on how long HMRC will take to process the repayment and the level of checking they do before releasing the funds.