Pub Tax Tips: How to Get a Bigger Tax/CIS Refund or Rebate

How to Get a Bigger Tax Refund/Rebate

One of the most common things we hear from clients is that their mate 'Dave' at the pub had a bigger tax rebate than they did. Why? Because they feel their refund should be just as big as Dave's.

Let's break down exactly what creates a tax refund and—more importantly—what you can legitimately do to increase yours.

Why Do You Get a Tax Refund?

To understand the concept of a tax refund, here are the most common scenarios that create one:

• CIS tax deductions — You work in the construction industry and have CIS (Construction Industry Scheme) tax stopped as you go along
• Job changes — You left employment mid-year and had a period of no income
• Payment on account over-estimates — You earned more in the previous year, so your advance payments were based on higher earnings
• Incorrect tax codes — HMRC applied the wrong code, resulting in overpaid tax

CIS Tax: The Most Common Route to a Bigger Refund

If you're a subcontractor in the construction industry, you'll have 20% (or 30% if unregistered) deducted from your payments under the CIS scheme. At the end of the tax year, you can reclaim the difference between what was deducted and what you actually owe.

For business owners who want to take this further, get a tax health check can help you put it into practice.

The key to getting a bigger CIS refund is making sure you're claiming every allowable expense against your income before calculating what you owe. The more legitimate expenses you claim, the less tax you owe, and the more of that 20% deduction comes back to you.

Expenses That Increase Your Tax Refund

Here are the categories of expenses that subcontractors and self-employed workers commonly miss:

Travel and Transport

• Mileage — 45p per mile for the first 10,000 miles, 25p per mile after that
• Parking and tolls — Any work-related parking charges
• Public transport — Train, bus, or taxi fares for work travel

Tools and Equipment

• Hand tools — Everything from drills to tape measures
• Safety equipment — PPE, hi-vis, safety boots, hard hats
• Workwear — Clothing with your company logo or protective clothing

Working From Home

• Home office costs — Proportion of heating, lighting, broadband
• HMRC flat rate — £6 per week without needing receipts

Professional Costs

• Accountancy fees — The cost of preparing your tax return
• Insurance — Public liability, professional indemnity
• Subscriptions — Trade body memberships, relevant professional subscriptions
• Training — Courses that improve your existing skills

Phone and Communication

• Mobile phone — Business proportion of your phone contract
• Internet — Business proportion if working from home

What NOT to Do

Let's be absolutely clear: do not make up expenses. We're not suggesting for one moment that anyone should invent costs to inflate their refund. When you complete your own tax return online with HMRC, it can feel like you're just putting numbers into boxes—but those numbers need to be accurate and supported by records.

Making false claims is tax fraud. HMRC's data analysis is more sophisticated than ever, and they cross-reference claims against industry averages. If your expenses look unusually high, expect an investigation.

How to Maximise Your Legitimate Refund

1. Keep every receipt — Use an app to photograph receipts as you get them. Paper fades, phones get lost, but cloud storage is forever.
2. Track mileage properly — Keep a log of every business journey with date, destination, and purpose. Apps like MileIQ make this simple.
3. Separate business and personal spending — Use a dedicated business bank account and card. This makes it far easier to identify and evidence your expenses.
4. Claim everything you're entitled to — The list above is not exhaustive. A good accountant will find expenses you didn't know you could claim.
5. File early — Filing your return early means getting your refund earlier. You don't have to wait until January.
6. Use an accountant — The cost of an accountant is itself tax-deductible, and they'll almost always find more savings than they cost.

How Much Could You Be Owed?

We've seen CIS refunds ranging from a few hundred pounds to over £10,000, depending on the level of income and expenses claimed. The average CIS subcontractor who uses a professional accountant gets a significantly larger refund than those who self-file.

Related Reading

• 33 ways to save tax
• How much does an accountant cost?
• Speak to a tax specialist

Ready to take action? talk to our team.