As a CIS subcontractor working in the UK construction industry, you might be paying some tax from your payments each year. Such payments are usually considered advance payments towards your Income Tax and National Insurance. Once your tax liability is determined, you will notice that you have actually paid more tax than you owed to the Revenue.
In such a case, you will be able to claim a CIS tax refund. However, there is one common issue that arises once you make a Self-Assessment tax return: How long does a CIS tax refund take?
The amount of time it will take depends on the way how your CIS tax refund claim was processed and several other factors.
It might take longer in case of additional checks or when something is wrong with the information that you provided in your claim. This guide gives an insight into the CIS tax refund process and provides you with information about the CIS tax refund timeline for 2026.
What is a CIS tax refund?
Under the Construction Industry Scheme, the contractor has to make a tax deduction from the payment to the registered subcontractor. Usually, the deduction percentage for the registered subcontractor is 20%, whereas the percentage for the unregistered one is 30%. Gross payment subcontractors don’t have CIS deductions from their payments.
However, this is not always the tax that you have to pay. It’s actually an advance tax on your income and National Insurance.
While filing your Self-Assessment tax return, you will need to declare:
- Your total income from your business
- Your business expenses
- Deductions made to you under CIS
- All other information regarding your income and taxes
Then HMRC calculates the tax and National Insurance that you have to pay and, if your deduction is more than this sum, it gives back the excess.
How long will it take to receive a CIS tax refund in 2026?
There is no guaranteed number of days for any refund by HMRC that applies to every single case of CIS refund.
If you have applied for a CIS refund through the self-assessment system, you need to go through HMRC’s repayment procedure first before receiving the refund.
HMRC says that the claims are processed as quickly as possible, depending on the repayment security checks.
Taxpayers can use HMRC’s website to check the status of a payment. A refund that shows “pending” means that the repayment has been made, but not yet approved and issued.
The “5 Working Days” rule clarification
Some websites suggest that HMRC tax refund takes 5 working days to process. It needs some clarification.
According to HMRC, at the moment, the refund of the tax calculated on P800 after it is submitted online might take up to 5 working days, whereas the cheque refund through the same system might take up to 6 weeks.
But the above doesn’t mean that the same rule applies to the repayment of CIS refunds using the Self-Assessment repayment system.
How does a CIS refund occur?
CIS refund scheme goes like
- CIS deduction
- Self-Assessment tax return
- HMRC calculation
- Repayment approval
- Refund
For example, if during the tax year the subcontractor’s total deduction from earnings under the CIS rule amounts to €8000, taking into consideration their income, expenses, tax allowances and National Insurance contributions, the final liability could turn out to be less than €8000 already deducted.
In such a case, the excess could be considered as a repayment. The HMRC CIS guideline says that self-employed individuals should include their CIS deduction in the Self-Assessment tax return.
What can delay CIS tax refund?
Several factors could cause a delay in the refund process
Inaccurate CIS Deduction Figures
These figures must tally with HMRC records. Contractors must give payment and deduction statements showing the payments they made and the deductions they made. HMRC guidelines say that these statements provide evidence of CIS deductions.
If figures in your return do not tally with those of HMRC, your refund may need further checking.
No Payment and Deduction Statements
You should keep your CIS payment and deduction statement for the tax year in question. Contractors must provide you with this documentation.
Mistakes in Your Self-Assessment Return
Mistakes in your income, expenses, CIS deductions, or other aspects of your return can cause issues. For example, claiming a CIS deduction of €12,000 when the records of your contractor show €10,000 might make your refund undergo a scrutiny process.
HMRC Security Checks
Not every repayment is processed automatically by HMRC. The security checks are conducted by HMRC on all reimbursement claims. According to the Self-Assessment guidelines, security checks are always done regardless of the repayment claims.
HMRC also conducts a review of inaccurate Self-Assessment repayments.
Outstanding Tax or Payments
Even having a refund calculation doesn’t always mean that the total amount of the money will appear in your account.
According to HMRC, if there is outstanding tax within the period of 45 days, this amount of money can be used to settle the debt, and not to repay.
How to speed up the process of CIS tax refund?
Although you can’t influence the process being processed in HMRC’s queue, there are ways to avoid unnecessary delays.
- Provide an Accurate Tax Return
Take into consideration the following factors:
- CIS deductions
- Turnover and business income
- Expenses
- Already paid tax
- National insurance information
- Your bank details
The more accurate the data you provide is, the fewer queries HMRC will ask.
- Keep CIS Statements
According to HMRC, the payment and deduction statements provide information about the total payments and deductions from contractors. If you have all the necessary documents, it will be easier to answer the queries.
- Check Your HMRC Online Account
After submitting your tax return, make sure that you monitor your Self-Assessment account. As per HMRC advice, there can be a situation where your repayments will appear as “pending”.
Making another application after receiving notification that your application has been received by HMRC will not be of any use but instead create problems.
- Give Proper Bank Details
If your refund needs to be paid electronically, make sure that you give proper bank details. Improper details would slow down the process.
- Provide required information promptly
If HMRC requires any information from you, make sure that you provide the same at the earliest. No refund can be processed without sorting out the proof of information required.
- Complete Your Tax Return Before The Deadline
There is no necessity of waiting for the Self-Assessment deadline to submit your tax return. Completing your return before the deadline will allow you sufficient time to go through your tax return and correct errors.
Is it Possible to get a CIS refund in advance of the End of the Tax year?
In some cases, yes. Under HMRC regulations, individual sole traders and partnerships who meet the required criteria are entitled to make an in-year CIS deduction repayment where the accounting period that determines the business profit has come to an end.
Forms such as CIS40 and CIS41, among others, may be used for the making of an in-year repayment claim. Such an in-year repayment may prove especially helpful for those individuals who have overpaid their CIS deductions and require a refund before the Self-Assessment procedure.
However, there are some differences between in-year repayment regulations and ordinary tax refund applications, so you may want to investigate your case thoroughly.
CIS Tax Reclaim: Solo trader and limited company
The process may depend upon the structure of your business too.
| Solo Traders | Limited Company |
| Solo traders and partners reclaim the CIS deduction as part of their Self-Assessment tax return.
The tax and National Insurance are calculated by HMRC with consideration of the CIS deduction. Any repayment may follow as a result to be returned to the taxpayer. |
Limited companies reclaim CIS deduction through the payroll system rather than just as a corporation tax repayment claim.
A limited company may use the CIS deduction to reduce its liability of PAYE and National Insurance, with the surplus to be carried forward in some situations.
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How Lexarox Accounts can assist CIS tax refunds
Construction workers and subcontractors will not only need to fill out forms for CIS tax refunds; they will also need to ensure that the calculations are correct.
Lexarox Accounts assists contractors, subcontractors, and CIS businesses through accounting services for CIS. These services include self-assessment tax return preparations, deduction of expenses, and CIS tax refunds.
Other Accounting services offered by Lexarox Accounts may include:
- CIS contractor and subcontractor service
- Subcontractor verification
- CIS returns and payment certificates
- CIS gross treatment
- Bookkeeping
- Payroll and PAYE
- VAT support
- Compliance with HMRC
For the subcontractor who is uncertain about whether their CIS deductions are accounted for properly and all relevant expenses are being claimed, professional accounting assistance may help.
Conclusion
So, how long does a CIS tax refund take in 2026?
There is no definite timeline for all CIS tax refunds. For subcontractors who apply by Self-Assessment, HMRC will review the application once the return has been filed and carry out certain security or compliance checks before issuing the refund.
The easiest method to avoid any delays in receiving the payment is to file an error-free return and ensure that your CIS deductions match your accounts, retain your payment and deduction statements, provide the right bank account details, and respond promptly to any requests for information from HMRC.
If you have any doubts regarding the CIS calculations, expenses or your Self-Assessment tax return, then getting professional assistance from a specialist like Lexarox Accounts can be very helpful.
Frequently Asked Questions
How long does a CIS tax refund take in 2026?
There is no set processing time for all CIS tax refunds. The time taken by the repayment made by Self-Assessment will depend on the processing and checks made by HMRC.
Is it possible to tack CIS tax refund?
Yes, it is possible to track the refund through the HMRC online portal.
Is it possible to make CIS deductions via Self-Assessment?
Yes. Sole traders and partners usually report their CIS deductions on their Self-Assessment tax return.
Why is my CIS tax refund taking longer?
It can be because of inconsistency between CIS data and actual figures, incomplete documentation, security issues, and errors in the tax return.
Is it possible to receive a CIS tax refund within the tax year?
Individual sole proprietors and partners who meet the criteria can apply for an in-year repayment.
