Your Tax Refund: How Will You Spend It?
10th February 2020
In the last year, RIFT has poured well over £35 million in tax refund payouts into the pockets of people just like you. We’re just a few weeks into 2020 now, but there’s still only a couple of months left in the 2019/20 tax year so it’s already time to be thinking about getting your next tax refund claim rolling. Just as importantly, it’s time to think about what you’re going to splash it on this time around.
We love hearing back from you with the stories of your refund-fuelled adventures. Here are a few of our favourites:
Okay, this one’s not super-glamorous, but the typical adult Brit has about £276 in “mad money” floating around at the end of the month. That’s around a tenner a day after your essential spending’s dealt with. 40% of us feel like we’ll never earn enough to have any serious spare cash. With an average one-year tax rebate of £1,481 over the last 12 months, though, you ought to have enough to treat yourself a little.
Again, even if it’s not all that exciting, dumping your debts is always a smart move. If you found yourself leaning a little too heavily on your credit cards over Christmas, this is a great time to find yourself with a refund cheque from HMRC to clear them. The sad truth is that the interest on your debts tends to ramp up way faster than on your savings. On average, we each had £967 sucked out of our finances in interest payments alone last year, so offloading those loans and card balances makes great sense.
Saving up for a deposit
59% of us in the UK go through a load of stress and hassle saving up a deposit for our first home.
If you’re looking for a change of scenery then a healthy tax refund can easily help you jump a rung or two up the property ladder. Why not let your refund take the strain instead of you?
Now we’re getting into the fun stuff! An average family holiday will set you back anywhere between £500 and £1,399. It’s one of the most expensive non-essentials we splash out on, and the single most popular use of a yearly tax refund payout.
If you’re anything like the typical Brit, you’re probably spending upwards of £1,500 a year on DIY projects and home improvements. New kitchens top the list as the most expensive renovations we do, followed by the usual suspects of garden and bathroom redesigns. It’s your nest, after all, so why not feather it in style with your tax refund?
We don’t tend to think much about what we’re spending throughout the year on clothing, so it might come as a shock to hear that the average bill comes to £733 a year! When you put it like that, a big pile of cash back from HMRC could be a very good look for you…
Get ready for your next tax refund
Tax refund amounts are on the rise right now, with the average claim made with RIFT rocketing up by a full 5% last year. The tax year ticks over on the 6th of April, and you’ll be able to put your next claim in after then. That gives you a few weeks to get all set up, so if you’ve never claimed with RIFT before, we’ll sort you out a free MyRIFT account and get the ball rolling in plenty of time. If you’re already on MyRIFT, there’s no time like the present to get your details updated and your claim underway.
Once that’s done and your tax refund’s paid, give us a shout to let us know what you’ll be spending it on. Every RIFT Refund has a story behind it, and we can’t wait to hear yours.