Construction Workers tax rebate guide

Employed in the construction industry? Pay for your own travel costs, tools or protective clothing?

It’s likely you will pay for work related expenses out of your own pocket and not get reimbursed by your employer or contractor.

If you do you can claim back tax relief on some or all of those expenses for the last four tax years.

It’s common for construction workers to have employed work under PAYE and self employed income under the construction industry scheme in the same tax year.

For employed construction workers under PAYE it’s important to know that many of the expenses allowable under self employment can also be claimed against PAYE work as well.

Construction workers allowable expenses

It might surprise you to learn what construction workers who aren’t self employed can claim for. This includes:

  • Travel expenses  if you have to travel to different sites for less than 24 months, and use your own car, van, or motorbike, or even public transport
  • Tools if you buy your own tools and aren’t reimbursed by your employer
  • Protective clothing for example gloves and boots that aren’t supplied by your employer
  • Washing protective clothing or uniforms even if your employer supplies the clothing you can still claim if you have to pay for cleaning it
  • Accommodation and subsistence expenses if you’re not reimbursed in full by your employer or are paid an allowance which is taxed

Our handy and free income tax guides give you more information on what you may be eligible to claim for.

Four things to know before you claim:

  • If you don’t claim you won’t get back what you’re owed.
  • It doesn’t affect your employer or contractor.
  • You don’t have to be with the same employer to claim.
  • Receipts aren’t always needed.

Construction industry tax returns

A self assessment tax return has to be completed by all CIS sub contractors and some PAYE workers.

If you work under PAYE only and you have a claim worth £2500 or more in any one tax year a self assessment tax return will need to be submitted.

How to make a construction tax claim

To make a construction tax claim under PAYE a form P87 will need to be submitted to HMRC.

If your claim is worth £2500 or more in any one tax year you will typically have to complete a self assessment tax return.

Trade specific tax rebate guides:

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