How to recover CIS deductions through a Corporation Tax Return

Construction Industry Scheme tax deductions aren’t recovered through the Corporation Tax Return. CIS is an employment tax that is deducted from a limited company’s gross income. The company recovers this through the P35 Employer’s Annual Return. It will then receive a refund, rather than a deduction when Corporation Tax is due.

The annual return submission (P35) informs HMRC how much PAYE and NIC a company has paid. If the company has paid too much or too little PAYE and NIC, HMRC will demand or refund the difference. The company must file the P35 after the end of the tax year using relevant payroll software.