Most subbies overpay. Here's how the money comes back — sole trader and ltd — and why the once-a-year rebate ring-round stopped being enough in April.
CIS deductions aren't your tax bill — they're money paid on account. When what's been taken off your invoices adds up to more than the tax you actually owe, the difference is yours. Sole traders get it back through Self Assessment. Ltd companies offset it against PAYE and claim the balance after the tax year ends.
New to the scheme altogether? Start with What is CIS? — the complete guide, then come back.
| Sole trader | Ltd company | |
|---|---|---|
| How | Through Self Assessment — deductions offset against the bill, difference refunded | Offset against PAYE/NI each month via the EPS; claim the balance from HMRC after year end |
| When | Any time after 5 April — the earlier you file, the earlier it lands | Monthly through the year; balance after 5 April |
| Typical wait | 2–6 weeks after filing (longer in Jan/Feb) | Offsets are immediate; the year-end balance takes weeks, not days |
Either way you need the paperwork: deduction statements from each contractor, and bank records to fill any gaps.
Here's the bit nobody thinks about. When the return goes in there's a box for bank details, and HMRC pays the refund to whatever account is in that box. Yours, if you filed it. Somebody else's, if they filed it for you and put theirs in.
That's how most rebate firms work. They get named on your return as the one to receive the money, the refund lands with them, they take their fee out of it and send you what's left. So you've handed over your own money and then waited to get some of it back, essentially.
One more thing, and I'll be straight that it's not official yet: accountants are reporting that for anyone in the new quarterly system, HMRC is only paying refunds direct to the subbie now, not to the firm. If that sticks, the take-a-cut model is on its way out anyway.
Plenty of them do what they say: file the return, take the fee — £180 to £354 a year is typical — send the refund. Fine, as far as it goes.
With us the refund goes into your account, not ours. We're never on the form as the one to pay, so there's nothing to take a cut of.
Here's what changed in April 2026: if you earn over £50k, HMRC now wants digital records and a filing every quarter, plus the final declaration. Five filings a year. A service that rings you every January covers one of them — the other four are still on you, and the penalty grace period ends in 2027.
That's not a dig at the rebate firm. It's just a different job now. Ours includes all five filings, the refund chase, and a one-page report every month — for a fixed monthly fee, not a cut of your own money.
Whoever's bank details are on the return. If you file it yourself, that's you. You can name someone else to receive it, but that's optional, it isn't binding, it only covers that one refund and you can cancel it. With CIS Books it's always your own account. We charge a fixed monthly fee and never take anything out of the refund.
The gap between what's been deducted and what you actually owe once expenses are in. Subbies with normal running costs are often owed money; anyone who's spent time on 30% almost always is. The refund calculator gives you a rough figure from three numbers — the return does the rest.
Sole traders: usually 2–6 weeks after the return goes in, slower in January and February — one more reason not to file at the last minute. Ltd companies: offsets run monthly, the balance comes after year end.
Generally up to four tax years. Behind on returns? You're likely owed more than the penalties cost — start here, no lecture.
Contractors have to issue one every month and can be asked to reissue. Bank statements rebuild most of the rest. Missing paperwork delays claims — it almost never kills them.