Limited company

How to Claim Back CIS Suffered Limited Company – Take Advice From Expert

How to Claim Back CIS Suffered Limited Company - Take Advice From Expert

Subcontractors who were a CIS limited company with CIS deductions from payments who wished to reclaim these deductions from HMRC had to write to HMRC or phone the HMRC hotline. You must utilise an electronic form available on your HMRC online account to make your claim.

How to Claim Back CIS Suffered Limited Company

You can fill out the online claim form after giving HMRC all of your year-end submissions, including the final complete payment submission and the final employer payment summary. Your claim does not require any supporting documents.

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About CIS (Construction Industry Scheme)

The Construction Industry Scheme (CIS) is a levy to boost revenue from the construction industry. Contractors must withhold money from subbies payments and remit it to HMRC as tax.

The point of view of limited companies is slightly more complicated than sole traders. The first thing you need to do as a limited company is a register for CIS.

If you’re not registered, the tax authorities of the UK will deduct it at 30%. If you are registered as a CIS limited company, they will deduct it at 20%.

You’re going to need your corporation tax to UTR, you need a few of the details you get to this with HMRC, and they’ll get registered, and then you can give the details on to your contractor.

If you need help with that part of the process, please reach out to Pearson McKinsey. 

Reclaim CIS For Limited Company

Suppose you have a serious amount deducted from you. The first way you can make that claim back is against payroll.

So if you run a payroll and if you’re deducting PAYE(Pay as you earn) from employees and less insurance, then HMRC want you to offset the amount of CIS that you’re having deducted against the PAYE and national insurance that you’re paying out and this might work fine for you.

The vast majority of limited companies are relatively small. They’ve got owner directors, and the amount going through payroll is usually only up to their allowance or up to the nice insurance. They’re not paying PAYE, so it’s useless. Still, that’s the first port of call.

The second is to offset any CIS you’ve had deducted against your corporation tax bill.

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You have to submit your corporation tax return, and then you have to write a letter to HMRC explaining the CIS you’ve had deducted from me this year. Would you mind offsetting it against a corporation tax?


If you think you’re a limited company and entitled to some CIS back, kindly contact Pearson McKinsey because we can help you make that claim. We can help you with all the paperwork to make a claim, and let’s make sure that you’re not paying more tax than you have to.