The good news for millions of UK taxpayers every year is that they are getting a refund. Some of the money that they have paid into the system is now coming back to them, and all in a lump sum. Tax refunds are exciting by their nature because of this. They are so exciting in fact that many people forget to use good judgement when it comes to saving that money versus spending it.
How Much Refund Is Received?
The Guardian reported this in 2011,
Stand by your letterbox – tax refund cheques of around £300-£400 will be landing on up to 6m doormats as a result of HM Revenue & Customs finding that huge numbers of people have paid too much tax.
Though the figures change from year to year, there are some who receive around this amount year in and year out. For those lucky taxpayers, that is a large amount of money that they can put towards whatever they happen to need at the time. It is important that they restrain themselves to only purchasing what they truly need and not spending on things that are wasteful.
There is no hard and fast number for how much one should save of their tax refund. That is something for the individual to determine on their own based on their personal life circumstances. Many would agree that saving as much of it as possible is an advisable life choice to make. Putting it into a savings account or perhaps an investment account means that tax refund season does not have to become something that is over in a matter of days. That money can be saved and put towards holiday gifts or other looming expenses.
Contact us if you are interested in having professionals help you obtain your fair share of tax money back from the government.