Reviewed by a Qualified Accountant
This content has been reviewed by our qualified chartered accountants. However, you should always check with a professional. If you have any questions at all, don’t hesitate to get in touch.
Working under the Construction Industry Scheme (CIS) means you are essentially running your own business. While HMRC takes a flat chunk of your pay at source, you can still claim back a significant amount through your expenses.
HMRC rules state that expenses must be wholly and exclusively for your trade. This means you cannot claim for things you use in your everyday life, like your personal rent or your Friday night takeaway.
Below, we have outlined the most common allowable expenses to help you get your CIS tax return sorted.
Tools & Equipment
🛠️ Power Tools & Machinery
Costs for drills, saws, grinders, or any heavy machinery needed for the job.
🔧 Hand Tools
Smaller items like hammers, screwdrivers, and spanners that you replace over time.
⚙️ Equipment Repairs
The cost of fixing your tools or getting your machinery serviced to keep it in safe working order.
🏗️ Equipment Hire
Hiring mixers or diggers for specific projects.
And more…
If you bought it specifically to get the job done, keep the receipt.
Materials & Consumables
🪵 Raw Materials
The cost of timber, bricks, cement, or any goods used directly in your construction projects.
🔩 Fixings & Consumables
Screws, nails, glue, and drill bits that get used up on site.
🧹 Site Cleaning
Consumables used to clear up after a job.
And more…
Anything that ends up physically built into your project is usually an allowable expense.
Protective Clothing & Uniform
🦺 PPE & Safety Gear
Hard hats, steel toe cap boots, high vis jackets, and safety goggles.
👕 Branded Workwear
Clothing that features your business logo. HMRC generally does not allow “normal” clothes like jeans, even if you only wear them for work.
🧼 Laundry Costs
A small, often overlooked amount for cleaning your protective gear or branded uniform.
🧥 Weather Gear
High-vis coats or waterproofs bought for the site.
And more…
If it is for your safety or identifies you as a business, it is likely covered.
Travel & Transportation
⛽ Fuel
Petrol or diesel for your work vehicle.
🚐 Van & Vehicle Costs
Fuel, insurance, road tax, and repairs for your work vehicle.
🅿️ Parking & Tolls
Charges for parking at a site or using toll roads and bridges while on the clock.
🚇 Public Transport
Train or bus fares used specifically to get to a temporary workplace or to visit suppliers.
🏨 Accommodation
Hotels or digs when working away from home.
🍎 Food & Subsistence
Meals bought when working away from your usual area.
And more…
Keep in mind that commuting from your home to a regular workplace is considered personal travel and cannot be claimed.
Office & Administration
📱 Mobile Phone & Internet
The business portion of your phone contract and internet bill used for speaking to contractors or ordering materials.
💻 Software & Apps
Costs for bookkeeping software or apps used to track your CIS statements and receipts.
🖊️ Stationery & Postage
The basics like pens, folders, and stamps for sending off invoices or contracts.
And more…
If you use your home as an office for your admin, you can often claim a flat rate to cover the extra utilities.
Professional Fees & Training
📑 Accountancy Fees
The cost of having a professional handle your CIS returns and tax rebates is fully tax deductible.
🛡️ Insurance
Public liability insurance or professional indemnity to protect you on site.
🎓 Training & Certifications
Fees for CSCS cards or specific training courses required to maintain your current skills.
And more…
Membership fees for trade unions or professional bodies can often be included too.
Staff & Labour
👷 Subcontractor Costs
If you pay other subbies to help you on a project, you can claim their labour costs (before any tax deductions).
👩💼 Admin Support
Wages or fees paid to someone helping you with your invoicing and paperwork.
And more…
Make sure you keep all invoices from other contractors to prove the work was strictly for your business.
