Expenses under CIS
As a self-employed worker, you may incur expenses in the course of your assignment. Typically, these will fall into one of two categories; either for materials or for travel and subsistence (including accommodation).
Depending on which category your expense falls into, will determine how that expense is treated. The Construction Industry Scheme guide (CIS 340) clearly outlines the treatment of each.
Expenses for materials
If you have to purchase materials in the course of your assignment on behalf of the end-client, then you are able to have these reimbursed in full. No CIS deduction will be made. However, you will need to prove that the expense was for materials by completing one of our expenses forms and substantiating this with a receipt.
Expenses for travel, accommodation and subsistence
All other expenses you may incur that are to be paid back to you by the end-client, are subject to the appropriate CIS deduction, based on your UTR status (this will either be 20%, 30% or gross). These expenses cannot be reimbursed in full - you will need to claim any CIS tax deduction through your self-assessment tax return.
Depending on which category your expense falls into, will determine how that expense is treated. The Construction Industry Scheme guide (CIS 340) clearly outlines the treatment of each.
Expenses for materials
If you have to purchase materials in the course of your assignment on behalf of the end-client, then you are able to have these reimbursed in full. No CIS deduction will be made. However, you will need to prove that the expense was for materials by completing one of our expenses forms and substantiating this with a receipt.
Expenses for travel, accommodation and subsistence
All other expenses you may incur that are to be paid back to you by the end-client, are subject to the appropriate CIS deduction, based on your UTR status (this will either be 20%, 30% or gross). These expenses cannot be reimbursed in full - you will need to claim any CIS tax deduction through your self-assessment tax return.
Updated on: 05/06/2024
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