At a glance
Who this applies to
Limited company subcontractors with more CIS deductions than they need to pay in tax.
When to claim
Usually after the tax year ends. If your business has stopped trading, you can claim for the current year before it ends.
What you need
Deduction statements, payroll records, company tax references and bank details.
Report the cumulative CIS deductions taken from your company’s income on an Employer Payment Summary (EPS). These can reduce its PAYE, National Insurance, employee Student Loan repayments and subcontractor CIS liabilities. Carry unused deductions forward against those liabilities within the same tax year.
Prepare and submit your claim
1. Finish your returns
Submit relevant Full Payment Submissions, Employer Payment Summaries and Company Tax returns. Submit monthly CIS returns too if your company also paid subcontractors.
2. Calculate the unused deductions
Reconcile your statements with payroll and CIS records. Subtract the tax already paid using CIS deductions from the total deductions taken.
3. Give HMRC the company and payment details
Provide the company name, telephone number, address, PAYE reference and Corporation Tax reference. For a bank refund, include the bank name, account number, sort code and account holder.
4. Choose the claim route and attach evidence
Use HMRC’s online or postal instructions for the past 6 tax years; earlier years require post. If you claim for the current year after stopping trade, include every deduction statement and bank statement received that tax year.
Illustrative example
Illustrative figures: your company has £1,000 deducted under CIS and £600 of PAYE liabilities. The offset leaves £1,000 − £600 = £400 to carry forward within the same tax year. If it remains unused at year end, you can claim it after filing the required returns.
After a claim, HMRC uses deductions against overdue PAYE or Corporation Tax first. An outstanding balance can therefore reduce the cash refunded; the example is not a promised payment.
Plan the company closure
Before applying for strike-off, wait 3 months after your company’s last trading or stock sale. Check the other eligibility conditions too; this waiting period is not the time it takes to dissolve the company.
Within 7 days of applying, send a copy to members, creditors, employees, pension fund managers or trustees and any directors who did not sign. Include landlords, staff and voucher holders where your company owes them money.
Frequently asked questions
How long will HMRC take?
HMRC usually responds within 8 weeks. An incomplete claim or figures that do not match its records may need further evidence; this is not a guaranteed payment date.
What if the company is already dissolved?
You must restore the company to recover money. Assets left at strike-off, including later HMRC refunds, pass to the Crown.
How do I correct a claim?
Use the online form again with the correct details. To amend by post, send a letter identifying the previous claim and the new overpayment amount.