43% of PAYE employees unaware they need to fill out tax return for expenses over £2,500

Research by RIFT Tax Refunds reveals that 33% of PAYE workers claim for business expenses, with the most common reasons being travel (43%), food & drink (18%), clothing/uniforms (11%), and accommodation (8%). 

However, 43% of those surveyed were unaware that a claim of more than £2,500 requires them to fill out a self-assessment form and submit it to HMRC before 31 January.

38% said that they didn’t know when the tax return deadline is. 

The research says that every year an increasing number of people are being fined for missing the self assessment tax deadline.

The deadline for submitting self assessment tax forms to HMRC is 31st January 2023.

In 2020, 8% of all self assessments were submitted after the deadline, rising to 15% in 2021, and to 19% in 2022. 

Missing the deadline can result in a £100 fine for missing the deadline. After 30 days, an additional fine is added to the tune of 5% of all tax owed. 

If the self assessment is still not submitted after three months, there is a daily penalty of £10 for a maximum of 90 days. After six months, an additional fine of 5% of all tax owed is added and it’s the same again when the delay reaches 12 months. 

At the 12 month mark, however, if HMRC believes you are intentionally and willfully refusing to submit the self assessment, the fine can rise to 100% of all tax owed, essentially doubling your tax bill. 

RIFT has highlighted that one common reason for late self assessment submissions is a lack of knowledge among PAYE workers who aren’t aware that they need to complete the tax form.

Bradley Post, CEO of RIFT Tax Refunds, said: “While self-employed people are often fully aware of their tax return obligations and all of the relevant deadlines, those who aren’t self employed often have no knowledge at all about the DIY tax process. 

"For many, this isn’t a problem because everything is sorted for them through the PAYE process, but for those who claim for significant business expenses, it’s vital to know how and when to complete a tax return for those claims. 

"For anyone who has never had to engage with the process before, it can appear complex and daunting. Anyone who wants to forgo the responsibility of a DIY tax return can instead enlist the help of tax experts who will ensure that the return is properly submitted on time and that the right amount of tax is paid.”