HMRC tax refund could put a big dent in rising cost of living
Workers across the country could be missing out on much-needed cash that would make a big difference amid the spiralling cost of living. With bills, particularly the cost of heating homes, going only in one direction, a tax refund from HMRC could make a big dent.
Research by RIFT Tax Refunds has found that many people could be owed refunds on overpaid tax. It found that the average one-year refund stood at £929. For those who’ve never applied, a back claim can be made for up to four years, adding up to as much as £3,374 on average, reports ChronicleLive.
Energy bills have rocketed for many people. The average household had an annual bill of £1,279 three years ago, but today it’s 20% higher at £1,536. An average four-year tax refund could, therefore, cover your bills for two years.
In 2019, the estimated annual household bill for food and drink was £3,219, as stated by the Office for National Statistics (ONS). However, due to the rate of inflation over the past couple of years, that sum has risen by an average of 5.7% or £184.
Therefore, the average household bill now stands at £3,403. This means that the average four-year tax refund is enough to cover 99 per cent of one household’s annual shopping bill.
Since 2019 the average annual cost of transport has risen by 19.2% from £4,420 to £5,270. Should you be able to claim the typical four-year tax refund, that would cover 64% of these particular outgoings.
RIFT says it has claimed back almost £308 million in tax rebates for 126,249 customers since 1999, so this could well be an avenue worth exploring.
CEO of RIFT Bradley Post said: “While a tax refund is not going to be enough to put an end to this anxiety or concern in the long run, it is a lump sum payment that could go a long way in helping many households and it’s money that they are rightfully owed.”