Tax Guide for Self-Employed Construction Labourers
What expenses can a self-employed construction labourer claim? CIS deductions, travel, PPE, CSCS card — with a worked tax calculation and refund example.
Tax Essentials
- CIS Status
- Yes — 20% deduction
- Typical Income
- £25,000–£35,000
- HMRC Flat Rate
- £60/year (tools & clothing)
- VAT Threshold Risk
- Low risk
- Key Certifications
- CSCS Green Labourer card
Construction labouring is work that falls under the Construction Industry Scheme (CIS). If you work as a self-employed labourer, your contractor deducts 20% from every payment and sends it to HMRC. At the end of the tax year, you file Self Assessment — and because labourers have lower expenses than skilled trades, the CIS refund you're owed is often larger than you'd expect.
Here's why: 20% CIS is deducted from your entire income, including the portion covered by your £12,570 personal allowance. Once you file and claim your expenses, the difference comes back as a refund.
What You Can Claim
| Expense | Examples | Typical Annual Cost |
|---|---|---|
| Travel between sites | Mileage at 45p/mile (first 10,000), then 25p — or public transport fares | £1,000–£3,000 |
| PPE & workwear | Steel-toe boots (£30–£80), hi-vis vests, hard hat, rigger gloves, ear defenders | £150–£350 |
| Basic hand tools | Tape measure, utility knife, shovel, wheelbarrow (if you supply your own) | £50–£150 |
| Insurance | Public liability (from ~£80/year for £1M cover) | £80–£200 |
| CSCS card | Green Labourer card renewal (£36 + HS&E test £22.50) | £30–£60 |
| Phone | Mobile contract (business portion — agency calls, site contact) | £100–£200 |
| Wet weather gear | Waterproof jacket, over-trousers (replaced as needed) | £30–£60 |
| Accounting fees | Tax return preparation, bookkeeping | £150–£300 |
Travel: Often Your Biggest Deduction
Labourers move between sites frequently — sometimes weekly, sometimes daily. Travel to temporary work sites is deductible (but commuting to a permanent workplace for over 24 months is not). At 8,000 business miles per year, the mileage deduction alone is £3,600.
PPE: Replaced More Often Than You Think
Steel-toe boots wear out every 6–12 months on a building site. Hi-vis vests get torn, gloves get shredded. A realistic annual PPE spend of £150–£350 is easy to hit — and every item is deductible.
HMRC Flat Rate Alternative
HMRC allows a £60/year flat rate deduction for tools and specialist clothing. For labourers, boots alone cost more than this — claim the real figures with receipts.
Expenses You Can't Claim
- Commuting to a regular site — if you've worked at the same site for over 24 months, travel there isn't deductible. Travel between different temporary sites is
- Everyday clothing — jeans, hoodies, and trainers don't qualify even if you only wear them on site. Only specialist PPE counts (steel-toe boots, hard hat, hi-vis)
- Tools provided by the contractor — if the site provides shovels, wheelbarrows, and equipment, you can't claim for them
- Fines and penalties — parking tickets, PCNs, late-filing penalties
- Food and drink — unless you're working away from your normal area overnight
Example: How Much Tax Does a Labourer Pay?
Jack works as a self-employed labourer through CIS. Here's his 2025/26 tax year:
| Item | Amount |
|---|---|
| CIS income (gross) | £30,000 |
| CIS deducted (20%) | £6,000 |
| Allowable expenses | £3,000 |
| Taxable profit | £27,000 |
| Income Tax (after £12,570 personal allowance) | £2,886 |
| Class 2 NI (£3.50/week × 52) | £182 |
| Class 4 NI (6% on £12,570–£50,270) | £866 |
| Total tax + NI due | £3,934 |
| CIS already deducted | £6,000 |
| Refund due | £2,066 |
Even with just £3,000 in expenses, Jack gets a £2,066 refund — because 20% CIS was deducted from his entire income, including the tax-free personal allowance. Without claiming expenses, his refund would still be £1,286 — but expenses add another £780 on top.
Record Keeping Tips
- Log every site and journey — note the site address, contractor name, and mileage each day. Labourers move between sites more than most trades, so a daily log prevents gaps
- Keep PPE receipts — photograph receipts for boots, gloves, hi-vis, and hard hats immediately. They're small purchases that add up over the year
- Save your CIS payment statements — you need these to reclaim the 20% deduction. Every contractor should give you one for each payment — chase missing ones before January
- Record which sites are temporary — HMRC allows travel deductions to temporary workplaces but not permanent ones. Note when you started and finished at each site
- Keep your CSCS card renewal receipt — the £58.50 combined cost (card + HS&E test) is deductible every time you renew
Key Deadlines
| Deadline | What |
|---|---|
| 5 April | Tax year ends — finalise your income and expense records |
| 31 January | File Self Assessment and pay any tax owed (or receive your refund) |
| 31 July | Second payment on account (if applicable) |
If this is your first year, register for Self Assessment by 5 October after the tax year ends.
This guide is for informational purposes only and does not constitute tax, legal, or financial advice. Tax rules change frequently. Always verify current requirements on GOV.UK or consult a qualified accountant for your specific situation.
Official Sources
- Expenses if you're self-employed — GOV.UK
- Construction Industry Scheme — GOV.UK
- Simplified expenses for vehicles — GOV.UK
- Self-employed National Insurance rates — GOV.UK
- CSCS card types — CSCS