If you are registered under the Construction Industry Scheme (CIS), then usually you would have overpaid income tax and be due a large refund.
The reason you would be entitled to a tax refund is that you pay 20% tax at source on your gross income, which doesn’t factor for the personal tax free allowance everyone is entitled to. Also, your tax should be based on your profit, not your gross income, which means there might be legitimate expenses you could offset against your profit in order to lower your tax liability – and ultimately maximise the value of your refund.
Personal Tax free allowances that come into play for anyone and apply for those looking to get a CIS Tax Rebate are shown below, you would have paid tax on those amounts as part of the Construction Industry Scheme instead of getting them tax free.
As long as your tax affairs are up to date and you haven’t accrued penalties from HMRC for not submitting your tax return or submitting it late, or failed to pay any tax due in previous years, then you should be due a refund. If unfortunately you tax affairs are already in a mess and HMRC has imposed financial penalties on you, don’t panic, we can still help you get the mess cleared up!
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However, please note that regardless of the value of any refund, it is a mandatory requirement that you submit a tax return under Self Assessment within HMRC stipulated deadlines. Failure to fill in tax returns within HMRC’s deadlines will automatically be sanctioned by financial penalties (or fines!), which can amount up to £1,600 per tax year! And of course, you can always choose to complete your tax return yourself but mistakes can be costly unless you really know what you’re doing! In the long run, using our services can save you a lot of time, money and headaches…
Every year you MUST submit a tax return to HMRC. If you don’t, you are liable to penalties that could amount to thousands of pounds, which could leave you out of pocket! So it’s really worth getting your tax returns submitted properly by a tax agent like ourselves so you sleep easy, having the peace of mind that your tax affairs are in order.