Seven ways to put your tax refund money to good use

A tax rebate may feel like a bonus, but it’s important to remember that it’s still your money. Here are seven (responsible) ways to spend your tax refund.

Before you fantasise about swimming in a pool of money, it pays to put your tax refund to good use. Image cc: www.ohgizmo.com

Before you fantasise about swimming in a pool of money, it pays to put your tax refund to good use. Image cc: www.ohgizmo.com

Fix it

Peeling wallpaper? Fridge on the blink? Brake pads need replacing? Use this opportunity to repair those things you’ve been putting off because you didn’t have the extra cash.

Pay your debts

If you owe someone money, whether a friend, a relative or the bank – put your mind at ease by settling the debt with your tax refund. Clear your debt and the next refund will be yours to spend any way you like.

Start a holiday fund

Do you feel like your December bonus is too paltry for a good getaway? Why not put your refund money into a notice account, so that you can’t touch it until it’s time for your holidays.

Start a hobby

If a lack of funds is preventing you from taking up a hobby you’d really like to try, now’s your chance. A guitar and lessons, DJ decks, horse riding – whatever you want to spend your free time doing, you can pay for it with the money you receive back from HMRC.

Join a gym or yoga studio

Health clubs and gyms are notoriously expensive, but with a decent refund pay out, you could pay for a year or six months upfront and invest in your personal sense of well-being.

Start a business

If you have an idea for a small business you’d like to start, you could use your rebate money as start-up capital. Obviously we’re not talking about the millions needed for large-scale capital investment – but perhaps along the lines of paying for a new website to be built, buying ingredients and equipment to start a cupcake company, or sourcing supplies to start making a quirky new range of handbags.

Open a high-interest savings account

If saving just isn’t part of your vocabulary, you could use this opportunity to open a high-interest account with your refund money and then let that inspire you to continue adding to it.

If you are one of the millions who have not claimed their overpaid tax, visit 1st Contact Tax Refunds and start the process as soon as possible.