We are urging clients to claim their rebates early, we’re certainly expecting delays from HMRC much like the whole post covid era. The good news is Jameco Group have further invested in our staff and technology, allowing us to provide a 2 day turn around once all information is received from the client.
Let’s take a look at the common questions we often get asked as accountants when it comes round to CIS Tax Rebate season…
Am I due a CIS tax rebate?
Under the CIS scheme, you will likely be entitled to a tax rebate, you have probably had 20% tax deducted from your wages to go towards your tax and national insurance contributions.
As a CIS worker, if you’ve paid out of your own pocket for any work-related expenses such as travel, tools and uniforms, you can also claim this amount back against your tax paid. Contact Jameco Tax Returns today, we’re always happy to help.
What expenses can i claim?
Tools and Equipment
You can claim for any tools you require in order to complete your work or any costs that are associated with maintaining your equipment.
A portion of your motor expenses can also be claimed as a business expense should you have to travel for work. You can claim for fuel costs that you have incurred to get to your jobs OR road tax fees, costs associated with maintenance or repairs, your MOT, and even parking fees. You can either claim mileage OR the cost of maintaining the vehicle and not both. Depending on your personal situation, it could be more cost effective for you to claim on a mileage basis as opposed to standard costs. You are allowed to claim 45p (per business mile) on your first 10,000 miles and 25p for every mile thereafter. You can also claim for public transport if you do not use your own vehicle for work.
Internet & Phone Costs
If you use the internet to find work online, or a mobile phone for work to answer calls, send emails for research or anything else work related you can claim for the business portion of your internet and phone costs too. If you print invoices, send statements or letters – you can include items such as printer ink, stamps and any other stationery costs associated with your business.
Clothing & PPE
If you’re required to wear PPE for your job then this is all claimable expenses. This includes overalls and any specialist works clothing too.
Administrative/Home Office Costs
Your business is likely to use an accountants and its possible you also get paid through a payroll company which charges a weekly fee. The accountant fee along with any payroll costs can also be claimed back on the tax return. If you have an office at home where you look for work, complete your paperwork and business admin then you can claim £10 per month towards your bills.
I Was Employed Before I Went CIS, Does This Matter?
Absolutely not, in fact it actually means you’re likely to get a larger rebate than expected. As a employed paye worker, if you’ve paid out of your own pocket for any work-related expenses such as travel, tools, clothing, equipment, nights away and food allowance. You can also claim this amount back against your tax paid, know as an employed tax rebate. The difference is we can back date these claims up to four tax years, with most clients getting an average of £2,250 per year….We’ll let you do the maths on that one.
Contact Jameco Tax Returns today, we’re always happy to help.