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Can I claim CIS deductions back?

I was paid CIS less 20% and want to know if claiming the 20% back will have any repercussions.

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When I first incorporated my limited company, like many, I didn't have a clue what I was doing or the responsibilities that lay with me...

I was being paid by a customer of mine with 20% deductions for CIS but into my personal bank as I didn't know that I had to use a business account and was paying the lads working for me as what I thought was sole trader but essentially was just a bank transfer from me to them so cash in hand so to speak.. Fast forward a year or so and my company is now operating properly in terms of business accounts and paying workers. I've only recently found out as I am being paid CIS again that I actually claim the 20% back less what I have deducted from workers.

Is it worth me trying to claim back the money that was deducted from going into my personal bank account or will this open a huge can of worms for me? The ammount is around £20k so would be useful to my business if i could claim this back without putting what I did on the radar, but not worth risking my business for obviously.


Any advice would be hugely appreciated...Thanks in Advance

Replies (6)

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By SXGuy
27th Feb 2020 10:27

If im honest, and ill say it nicer than most who will respond, seek an accountant, this site is for professionals to discuss accounting matters and isn't a site that offers free tax advice to tax payers.

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Replying to SXGuy:
By NeedAccountingAdvice
27th Feb 2020 10:36

No problem, really appreciate your response.

Thanks (1)
By Duggimon
27th Feb 2020 10:47

With £20,000 tax at stake and a number of mistakes already made, you really ought to find an accountant to go through everything with you and get you all up to date, I doubt you'll get any other advice on here, we wouldn't be able to tell you everything you need to know.

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Replying to Duggimon:
By NeedAccountingAdvice
27th Feb 2020 10:54

No problem, I am up to date now in terms of everything else with our accounts. I just didn't know from previous that you claim the 20% back. But I'll speak to our accountant on this.


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By kestrepo
27th Feb 2020 15:06

This question comes up loads!!

Link below to the form. You will need your Government Gateway ID:

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Julian Webb
By JulianWebb
28th Feb 2020 10:53


I have a lot of construction companies on my books and I have come across similar situations before. The first thing to do is a complete reconciliation of the payments. Also get all the CIS certificates up together so you know what has been paid to HMRC. You could also check your Govt Gateway account to see what is there.

Once you have everything together you can see what needs to be reclaimed if its £20K its worth having a go to get it back.

It really needs a complete review.

If you would like some help give me call on 07762558559 or mail me on [email protected]

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