Stay Compliant. Maximise Your Tax Rebate. Let Perpetual Take the Stress Away.

The 2024/25 self-assessment season is here, it’s essential for those working in the construction industry to remain fully compliant with the Construction Industry Scheme (CIS). Whether you’re a contractor or subcontractor, managing CIS deductions and preparing your tax return can be time-consuming and complex.

At Perpetual, we’re here to make the process simple. In this guide, we’ll break down what’s important for the 2024/25 tax year, highlight common pitfalls, and explain how our expert accounting team can help you claim your CIS refund with confidence.

1. CIS – What You Need to Know

The Construction Industry Scheme (CIS) is HMRC’s way of regulating how payments between contractors and subcontractors are taxed within the construction sector. If you’re part of the scheme, CIS deductions must be accurately reported on your self-assessment return to avoid issues and secure your refund.

Key Points for 2024/25:

• CIS Deductions: Subcontractors will continue to have deductions taken from their payments, typically at 20% (or 30% if unregistered). These deductions count toward your annual tax bill and must be correctly included in your return.
• CIS Registration: Contractors must verify their subcontractors with HMRC to apply the correct deduction rate. If you’re a subcontractor and not yet registered, it’s time to do so to avoid the higher 30% deduction rate.
• Stay Updated: While there are no major changes to CIS rates this year, it’s important to stay current with HMRC’s rules to avoid penalties or missed claims.
• MTD ITSA: Making Tax Digital for Income Tax Assessment goes live in 2026 so subcontractors will need to prepare for this major change. Perpetual can manage this process for you.

2. Common Mistakes in CIS Tax Returns

Even experienced contractors and subcontractors can make errors when it comes to filing under CIS. Avoiding these mistakes can save you time, money, and unnecessary stress:

• Not Claiming Overpaid Tax: Many subcontractors overpay tax throughout the year but forget to claim it back. We ensure you receive every penny you’re owed.
• Incorrectly Reporting Earnings: Misreporting income or deductions can delay your refund or trigger HMRC queries. Cross-checking payslips, deduction statements, and invoices is vital.
• Including Materials in CIS Deductions: CIS applies to labour, not materials. Confusing the two in your invoicing can result in incorrect deductions and inaccurate returns.
• Disallowable Expenses: Trying to claim expenses not “wholly and exclusively for business purposes”.
• Not claiming Allowable Expenses: Such as mileage allowance, protective clothing, training, phone and use of home.

3. How Perpetual Can Help You

We offer end-to-end support for your CIS tax return—ensuring accuracy, compliance, and peace of mind.

Here’s how we support you:

• CIS Deduction Review & Claims: We’ll review your CIS statements and make sure all eligible overpaid deductions are claimed in your return.
• Full Self-Assessment Service: From data gathering to submission, we manage your tax return with attention to every detail.
• Avoid Penalties: We file your return correctly and on time, helping you stay compliant and avoid late filing fines and ready for MTD filing starting in 2026.
• Industry-Specific Tax Planning: We help you make the most of allowable expenses, such as tools, travel, and protective gear—maximising your refund.

4. Why Choose Perpetual for Your CIS

• Construction Industry Expertise: We understand the unique challenges faced by contractors and subcontractors—and how to navigate them.
• Trusted, Year-Round Support: Our advice and services aren’t limited to tax season. We’re here when you need us.
• Tailored Service: We offer a personalised approach based on your work, income pattern, and goals.
• Proactive Advice: We don’t just tick boxes—we help you plan ahead, reduce your tax burden, and stay financially confident.
• MTD Compliant: We prepare and maintain digital records and HMRC submissions in line with the forthcoming filing obligations.

5. Get Ahead of the 2024/25 Deadline

The earlier you prepare, the easier it is to file. Let Perpetual take care of your CIS self-assessment return so you can focus on your work, not your paperwork.

✅ Book your FREE consultation today and take the stress out of your 2024/25 tax return.

Call or WhatsApp Sean on 0333 77 222 30

Filing your CIS return doesn’t have to be taxing! With Perpetual on your side, you can be sure your tax return is handled professionally, your refund is maximised, and your compliance is spot-on, year after year.