CIS Refund: Top Reasons Why CIS Workers Overpay Tax
Many construction workers under the CIS scheme unknowingly pay more tax than they should. This happens because the system automatically deducts tax from their payments, often at higher rates than necessary. Understanding why this overpayment occurs can help workers claim back money they've already earned and ensure they're not losing out on their hard-earned cash. What is CIS and Why Does Overpayment Happen? The Construction Industry Scheme (CIS) is a special tax system for construction workers. Think of it like a safety net - contractors must take tax money from workers' pay before giving it to them. This ensures taxes are paid, but it often results in taking too much money. Unlike regular employees who have personalized tax codes, CIS workers often have a standard 20% or 30% deduction rate applied to their earnings. This one-size-fits-all approach frequently leads to overpayment because it doesn't consider individual circumstances or allowable expenses. Missing ...