Your Tax Refund: What's It Really Worth?
13th December 2019
With household spending on the rise, it’s more important than ever that you get back everything the taxman owes you. According to figures from the Office for National Statistics, British household spending hit a 13-year high in 2018. By the most recent statistics, we’re blowing through our cash at a rate of £572.60 a week on average. That’s £18.40 a week higher than the year before, even though we’re spending less on things like meals out and clothes.
The tricky thing about this is that we’re spending our way into debt faster, and a lot of the money our households are leaking is going on stuff we can’t really cut down on. We’re talking about essential transport, fuel, housing and power. Transport alone, for example, is costing us an average of £80.80 a week. The things we need just to keep us ticking over are getting more expensive and the strain is starting to show. We’re draining our savings and relying on borrowing to cover the costs we can’t cut – and that’s just not healthy.
At the same time, we’re leaving money on the table at HMRC. There’s a shocking amount of cash being lost by people who aren’t claiming their yearly tax refunds – all of which could be filling up the growing holes in our household finances. An average 4-year tax rebate claim right now comes to £3,023.56. Let’s see what that’s worth in real terms:
- Practically an entire year’s worth of food and non-alcoholic drink.
- Over 37 weeks of transport costs.
- Over 45 weeks of housing bills.
- Almost 2 years of essential utility bills.
- About 2.5 years of Council Tax.
- Close to a year and a half of general household upkeep.
Of course, we haven’t even talked about all the non-essential things we’re buying, from the annual £2,579 we’re spending on restaurants and hotels to the £1,399 that goes on package holidays. To cut a long story short, UK households are dipping into their hard-earned savings and taking on expensive loans to cover costs they can’t avoid. Meanwhile, HMRC’s sitting on a vast and growing pile of cash that should be back in your pockets.
You get a hard limit of 4 years to claim back what you’re owed, and then it’s gone forever. RIFT specialises in getting you the maximum refund with the minimum fuss, so get in touch to find out how much you should be claiming back.