What Can You Claim on a CIS Tax Return?

Self-employed CIS subcontractors can generally deduct allowable business expenses when calculating taxable profit.

An expense must be incurred wholly and exclusively for business purposes. Where something is used for both work and personal reasons, you can normally only claim the business share.

Common expenses may include the following.

Tools and equipment

You may be able to claim for tools and equipment needed for your construction work.

The tax treatment can depend on what you bought and your accounting method, so keep clear records and receipts.

Materials

You can record materials bought for your work as business costs where they meet the relevant rules.

Keep these costs separate from labour income and retain the supplier invoices.

Protective clothing

You may be able to claim for:

● safety boots

● hard hats

● high-visibility clothing

● other genuine personal protective equipment

Ordinary clothing is not usually allowable simply because you wear it at work.

Travel and vehicle costs

Allowable costs may include qualifying business journeys, parking and public transport.

You may be able to claim either:

● simplified mileage expenses

● the business proportion of actual vehicle costs

Travel between home and a permanent workplace is not normally treated in the same way as travel to temporary work locations, so the circumstances matter.

Insurance and financial costs

You may be able to claim business-related costs such as:

● public liability insurance

● professional indemnity insurance

● bank charges on a business account

● interest on qualifying business borrowing

Phone and office costs

You may be able to claim the business share of:

● mobile phone bills

● internet costs

● stationery

● postage

● software

Professional fees

Allowable costs may include:

● accountancy fees

● bookkeeping costs

● subscriptions to relevant professional organisations

● MTD software

Claiming allowable expenses reduces your taxable profit. It does not automatically mean you will receive a CIS tax refund, as the final result depends on your overall tax calculation.

What Can’t You Claim?

You cannot claim personal spending or costs that are not connected with your business.

Examples may include:

● ordinary everyday clothing

● private travel

● fines and penalties

● the personal share of a mixed-use cost

● personal meals in normal circumstances

● non-business purchases

Most importantly, you cannot claim CIS deductions as expenses.

CIS deductions are tax already paid. Entering them as an expense would reduce your profit incorrectly and then count the same amount again against your tax liability.