Most people working in the construction industry, and all of those who are self employed, pay the taxman more money than he may actually be entitled to. That’s because tax for CIS members and self employed construction workers is calculated in advance: while tax codes for PAYE construction employees will be given to each worker according to a forecast of how much money the taxman thinks that employee will earn over the next year. Construction Site Skills runs a tax refund for construction workers service, which may be able to claim you back money that you have overpaid to the authorities.
Entitlement to Tax Refund for Construction Workers
You’ll be entitled to a construction tax refund if you are able to say “yes” to any of the following questions. For self employed or the majority of CIS members: have you had to buy anything in the last year that you needed in order to do your job? Did your total tax bill for the last financial year exceed £1,000? Do you normally pay your tax without claiming anything back? And for PAYE employees: have you always assumed that your tax bill is correct, and never challenged it?
The entitlement to a construction tax refund is based on the fact that your tax is calculated forwards as well as backwards. As soon as your tax bill exceeds £1,000 for a year, the taxman starts predicting what you will earn for the next six months and taxing you in advance. The Construction Site Skills tax refund service will be able to calculate if you have paid too much.
Eligibility for a Tax Refund for Construction Workers
You are eligible to apply for a CIS tax refund for construction workers for any earnings you have paid tax on in the last four years. If you have never had a tax refund then you are advised to check if you are entitled to one. Get in touch with the Construction Site Skills tax refund service or apply directly for a tax refund form from the Construction Site Skills tax refund site. You’ll need your P45 or P60 in order to make sure that your application goes smoothly. In some cases you may require a P91 (Employment History) and a P85/86 (entry and exit dates into and out of the UK). If you are unsure about which forms you need just get in touch with Construction Site Skills – one of our helpful team will be on hand to explain everything.
What Happens if You are not Eligible for a Tax Refund for Construction Workers?
Absolutely nothing. If you are one of the unfortunate few who has already paid the correct amount of tax, and are not eligible for a construction tax refund: don’t worry. Construction Site Skills won’t charge you a penny. It’s impossible to lose out when you use the Construction Site Skills tax refund system – you either get all the money that the taxman owes you back; or you pay nothing at all.