Why Is Your CIS Refund Delayed? Common HMRC Mistakes to Avoid

A delayed CIS refund can be frustrating when you are expecting money that was already deducted from your construction payments. For many subcontractors, the delay is not caused by one major problem but by small errors in records, figures, or personal details. HMRC checks CIS deductions against information supplied by contractors, so even a mismatch can require further checks before a refund is released. Understanding these issues can help you avoid unnecessary delays.

How a CIS Refund Normally Works

Under the Construction Industry Scheme, contractors usually deduct tax from payments made to subcontractors. For registered subcontractors, the standard deduction is generally 20%, while a 30% deduction can apply when a subcontractor is not registered or cannot be verified. These deductions are treated as advance payments towards tax and National Insurance.

At the end of the tax year, an individual subcontractor normally reports their income and CIS deductions through Self Assessment. HMRC then works out the actual tax and National Insurance due. If the amount already deducted is greater than the amount owed, the excess can be repaid. This is why an expected cis refund in Bromley may not always arrive immediately after a tax return is submitted.

1. Your CIS Deduction Figures Do Not Match

One of the most important checks HMRC can make is comparing the CIS information you report with the records submitted by your contractors.

For example, you may report that a contractor deducted £2,000, while the contractor's records show a different amount. HMRC may need to investigate the difference before accepting the full claim.

This can happen because:

• A contractor entered the wrong figure.
• A payment was recorded in a different tax month.
• You accidentally entered a deduction twice.
• One of your CIS statements is missing from your records.

HMRC guidance confirms that CIS records can be checked against contractor returns when reviewing deduction claims.

How to avoid it

Compare your CIS statements with your own invoices and bank payments before submitting your return. If something does not match, contact the contractor and ask them to check their records.

2. Missing CIS Statements Can Cause Problems

Your contractor should normally give you a payment and deduction statement when CIS tax has been deducted. HMRC states that these statements should be provided within 14 days after the end of the relevant tax month. Do not throw these statements away after receiving payment. They are useful evidence of the tax that has already been deducted.

If you lose one, ask the contractor for another copy. HMRC's CIS guidance specifically states that contractors may issue duplicate statements when an original is lost. Keeping these documents organised can make your cis refund in Bromley claim easier to support if HMRC asks questions.

3. Your Contractor Used the Wrong Details

A simple difference in your name or business details can cause verification problems. HMRC advises subcontractors to give contractors the exact legal or trading name used when registering for CIS, together with the correct UTR. If the contractor cannot verify you or the wrong business name is used, a higher deduction rate may apply.

Check that your:

• Full name or trading name
• UTR
• National Insurance details
• Address

are correct and consistent across your tax records. If your contractor has used incorrect details, ask them to correct their records where possible.

4. You Entered CIS Income in the Wrong Place

CIS payments are not treated in the same way as normal employment earnings. HMRC's current CIS guide states that individual traders should report CIS payments and deductions on the self-employed supplementary section of their Self Assessment return. They should not be reported on the employment section as earnings from a contract of employment.

Putting the figures in the wrong section can lead to incorrect calculations and may require the return to be corrected. If you are unsure which section applies to your circumstances, getting professional help before submitting the return can prevent this type of error.

5. You Claimed More CIS Tax Than Was Actually Deducted

Another common problem is entering a CIS deduction figure that is higher than the amount actually shown on your statements. For example, if your records show total CIS deductions of £3,400, entering £4,300 by mistake could trigger a query.

Do not increase the figure simply because you believe you should receive a larger refund. The claim must be based on the actual deductions made. HMRC may ask for evidence of the deductions or require you to change your claim if it believes the figures are incorrect.

6. Your Tax Return Contains Other Errors

Your CIS deduction is only one part of your Self Assessment calculation. Errors elsewhere in your return can also affect the final amount. For example, you may have:

• Missed income from another source.
• Entered the wrong business turnover.
• Claimed an expense incorrectly.
• Used incorrect figures from your accounts.

HMRC calculates the final tax position after considering your income, allowable expenses, tax already paid, and other relevant amounts. Therefore, a refund that is lower than expected does not automatically mean HMRC has made a mistake.

7. HMRC Has Asked for More Evidence

Sometimes a delay is simply because HMRC needs to check your claim. HMRC can ask for evidence supporting CIS deductions, and its guidance allows it to request supporting information where a claim is in question.

If you receive a request, do not ignore it. Read the letter carefully and provide the requested information by the deadline given. Delaying your response can keep the claim unresolved for longer. Useful documents may include CIS deduction statements, invoices, and bank records showing the related payments.

What Should You Do If Your Refund Is Delayed?

If you believe your refund is taking longer than expected, start by checking your own records rather than immediately assuming HMRC has made an error.

Go through your submitted tax return and compare it with:

1. Your CIS statements.
2. Contractor payment records.
3. Bank statements.
4. Invoices.
5. The CIS figures entered on your tax return.

If you find a mistake, determine whether the return needs to be corrected. If HMRC has contacted you, respond using the instructions provided. For a complicated cis refund in Bromley, professional assistance can also be useful. An adviser can compare your documents, identify inconsistencies, and help you communicate with HMRC.

A Simple Way to Prevent Future Delays

The best time to prevent a CIS refund problem is before submitting your tax return. Create one folder for each tax year and keep all CIS statements together. At the end of the year, add up the deductions and compare the total with your payment records.

Also check that every contractor has used your correct details. This simple process can catch many errors before HMRC sees them.

Final Thoughts

A delayed CIS refund does not always mean that something has gone wrong with your claim. HMRC may need to check differences between your tax return and contractor records, request evidence, or investigate incorrect information. Accurate CIS statements, correct figures, matching personal details, and careful tax-return preparation can reduce the risk of delays. If you are waiting for a cis refund in Bromley, checking your records carefully and responding quickly to HMRC requests can help keep the process moving.