Report the full CIS income before deductions and enter the CIS tax already withheld separately. HMRC sets that credit against the final liability. A company subcontractor uses a different repayment route, so do not apply a sole-trader checklist to company deductions.
What to put on the return
GOV.UK’s CIS subcontractor guidance says that at the end of the tax year you send your Self Assessment return as usual and record:
- your total pay before deductions were taken, as income
- the total deductions contractors have taken, as CIS deductions
HMRC then works out how much tax you owe and takes off the CIS deductions. If anything is still due, you pay by 31 January following the end of the tax year. If the deductions exceed what you owe, HMRC can refund the excess.
Keep the monthly payment and deduction statements your contractors give you. Without those totals, the CIS credit on the return is guesswork.
This is not the general sole-trader checklist
Wider sole-trader prep for 2025/26 sits in Self Assessment for sole traders. This page stays on CIS credit and reclaim mechanics.
In-year repayments vs waiting for the return
If you need a repayment of CIS deductions during the current tax year (rather than waiting for the year-end return), HMRC publishes form CIS40 for individuals. GOV.UK’s CIS40 page says to use your tax return instead once you are claiming after the end of the tax year. If you stop trading mid-year, GOV.UK also points sole traders and partners to an in-year claim route for deductions already taken.
Limited companies are different
Company subcontractors do not reclaim CIS through a personal Self Assessment return in the same way. GOV.UK directs companies to set CIS deductions against PAYE liabilities through FPS and EPS payroll submissions. Do not try to clear company CIS through a Corporation Tax return. This article is aimed at sole traders and partners using Self Assessment.
Gross payment status
If you have gross payment status, contractors should not take the usual CIS deductions in advance. The reclaim story on this page mainly matters when deductions have actually been taken (commonly 20% if you are registered, or 30% if you are not).
Illustrative only: a sole trader receives £40,000 gross from contractors in a year and sees £8,000 of CIS deductions on the statements. The Self Assessment trade pages still start from the £40,000 income figure, with the £8,000 entered as CIS deductions so it credits the bill. Whether that creates a balancing payment or a refund depends on the rest of the year’s tax, not on CIS alone.
CIS registration and reclaim do not, on their own, decide whether Making Tax Digital for Income Tax applies. MTD looks at qualifying self-employment and property income against HMRC’s phased thresholds. If you are unsure whether digital records and quarterly updates also apply to you, check if MTD applies before you assume CIS cash-flow is the only change.
If you want an accountant to prepare the Self Assessment pages that include CIS, use TaxSimba’s self-employed tax return service and register. Bring every payment and deduction statement you have. We do not guarantee a refund amount, and we do not replace HMRC’s CIS registration process.
Show gross income and CIS credit separately
Illustrative preparation example.
A contractor’s statement identifies gross pay and CIS deductions. Reconcile those figures to the bank receipt without treating the deduction as a second business expense. Keep the statement with the return so the tax credit can be checked separately from trading profit.
Check: Do the gross income, deduction and net payment reconcile?
| Check | Practical action |
|---|---|
| Does gross pay reconcile to net receipts plus deductions? | Use contractor statements and investigate missing or inconsistent months. |
| Are CIS deductions recorded as a credit? | Do not deduct the same amount from turnover or claim it again as a business expense. |
| Are you a sole trader, partner or company? | Use the appropriate reclaim process; company CIS does not follow the same personal-return route. |
Will all CIS deductions be refunded?
Only any excess after the full tax calculation and relevant account checks. A balancing payment may still be due.
Can I infer deductions from the bank receipt?
A bank credit alone does not establish the gross amount or CIS deducted. Obtain the payment and deduction statement.
Download a checklist for this guide
- List all contractors and payment months.
- Total gross pay before CIS deductions.
- Total evidenced deductions separately.
- Reconcile statements to bank receipts.
- Collect expenses and other personal tax information.