close menu

11 excellent ways to spend your UK tax refund

by Kobus Van den Bergh | Apr 09, 2019
  • Receiving a tax refund can sometimes feel like a great bonus. Whether you’re waiting on news of the amount or just anticipating the transfer into your bank account, here are 11 ways to make excellent use of your rebate.
    Tax refund money

    1. Save it for a rainy day

    If you’re disciplined with your money, your tax refund can go a long way. Perhaps you’re expecting a sizeable spend on something soon, or just building your cash reserves for the future – both good reasons for keeping it in your savings account. Insurance is an essential, but keeping ahead of unexpected expenses with an emergency fund is always a good plan.

    2. Add it to your investment

    If you’ve got an investment account (or two), why not give it a boost by adding your tax refund? Every bit you put in contributes to your long-term returns. If you don’t have any investments, there’s no better time to start saving than right now. You can use your refund as a lump-sum start to your savings or get some sound financial advice for your future.

    3. Pay off high-interest debt

    A tax refund is a great way to keep ahead of any debt with a high interest rate – most likely a credit card. This should be your priority when you’re settling outstanding payments. Credit card interest fees can be exorbitant and the last thing you need is for the debt to get out of hand. Next on the list is a store card. These can be hard to keep track of, so make sure you’ve explored everything you may owe.

    4. Put it towards your mortgage

    If you have no high-interest debt, you may want to boost your mortgage repayments. You could add your tax refund to top up your monthly payments or offset your mortgage with a linked savings account. Your decision depends on your circumstances and mortgage provider, so it’s worth speaking to a mortgage advisor before you make up your mind.

    5. Get educated

    Invest in your future by learning something new. There are lots of education options, and your tax refund can help you pay for them. You can develop a new skill for your small business, or make yourself more employable by adding to your expertise. Online courses are an excellent use of your money. You could also buy study materials or attend a short course.

    6. Start a business

    You can use your tax refund to start that small (or big) business that you’ve always dreamed of. These days, building a simple, professional website can be quite affordable. If you’re already online, use your rebate to boost your marketing, outsource your accounting or buy business tools that will help you grow. You could also redesign and print some new business cards to give to potential clients.

    See also: Your guide to UK tax reliefs for SMEs

    7. Fix your house

    There’s always that one thing that hasn’t been fixed in ages. Leaky taps, broken windows, a cracked tile or a chipped wall – a tax refund can finally sort it out. Even if your home is in great condition, maybe it’s time for a change of colour. DIY or hire some help with your extra cash to get your project completed faster.

    8. Give it away

    Contributing to a charity can make you feel great and help those in need. No matter the cause you support, they’ll always be appreciative of a few extra Pounds to further their mission. If you can spare the money from your refund, it’s a nice way to give back. Think of something dear to you or a principle you hold close to your heart. There’s bound to be a cause that you’d be glad to give to.

    9. Buy something you need

    Instead of spending your money on meals out and movie tickets, there may be something you really need. Perhaps it’s a new washing machine or a car part you’ve been meaning to replace. Sometimes it’s easier to buy something you need as soon as you receive your refund to prevent your cash from being whittled away on smaller, insignificant expenses.

    10. Use it for your hobby

    If you have a hobby, it’s likely there’s some gear you've got your eye on. Using your refund for your pastime can be a wise investment. Your passion project can easily turn into a newfound career, so set yourself up for success by spending a bit extra on the thing you love. If you haven’t yet found your calling, try something new – you never know where you’ll end up.

    11. Spend it on something nice

    Sometimes it’s necessary to take some time (and money) for yourself. If you’re one for shopping, take a trip to your favourite store and get something you’ve always wanted. Or use your tax refund to take a relaxing trip away from home. Spend some money on a new experience or treat yourself to a fine-dining dinner with a friend.

    Whatever your choice, make sure you’re getting what’s owed to you. One in three UK taxpayers are due a tax refund. If you haven’t claimed your tax refund yet, now is the time to start. Our tax refund service is simple: We apply, follow up and source any relevant documentation for you. All we need from you is to fill out our claim form and send us your P45 and P60. No refund, no fee guaranteed.

    We’ve made over 250,000 successful tax refund claims. Fill out our claim form to see if you’re eligible or find out more about our comprehensive tax refund services.

    We are a professional services company that specialises in cross-border financial and immigration advice and solutions.

    Our teams in the UK, South Africa and Australia can ensure that when you decide to move overseas, invest offshore or expand your business internationally, you’ll do so with the backing of experienced local experts.

    • Man cutting coin with table saw
      10 cost saving ideas for your small business
      Nov 20, 2019  |  by Scott Brown
    • Confused businessman
      Hiring your first employee for your UK business? This is how much it costs
      Oct 31, 2019  |  by Scott Brown
    • business plan
      Step-by-step guide to writing a business plan [template included]
      Aug 29, 2019  |  by Scott Brown
    • female-entrepreneur hot air balloon
      Why we need more women-owned businesses
      Jul 16, 2019  |  by Scott Brown
    • crowdfunding lightbulb
      7 ways to finance your small business
      Jul 16, 2019  |  by Scott Brown
    • Businessman looking to the future
      How to get your business ready for the future
      Jun 19, 2019  |  by Scott Brown
    • Guide to UK PAYE tax forms
      A guide to UK PAYE tax forms P45, P60 and P11D
      Jun 14, 2019  |  by Kobus Van den Bergh
    • Cut-taxes
      The 2019/20 tax year changes: What they mean for you
      Jun 10, 2019  |  by Scott Brown
    • confused
      Do you need to complete a Self Assessment tax return?
      May 29, 2019  |  by Kobus Van den Bergh
    • London-business
      The UK still the best country for business in 2019
      Apr 04, 2019  |  by Scott Brown

    South Africa

    Cape Town

    Regent Square
    Doncaster Road
    Kenilworth 7708 +27 (0) 21 657 2120


    25 Richefond Circle
    Umhlanga 4320 +27 (0) 31 536 8844

    United Kingdom


    One Croydon
    12-16 Addiscombe Road
    Croydon CR0 0XT +44 (0) 20 7759 7514



    9 Yarra Street
    South Yarra
    VIC 3141 +613 (0) 8651 4500

    Sable International is a trading name of 1st Contact Money Limited (company number 07070528), registered in England and Wales. We are authorised and regulated by the Financial Conduct Authority in the UK (FCA no. 517570), the Financial Services Conduct Authority in South Africa (1st Contact Money [PTY] Ltd - FSP no. 41900) and hold an Australian Financial Services Licence issued by ASIC to deal in foreign exchange (1st Contact Group - AFS Licence number 335 126).

    We use cookies to provide the best website experience for you. Using this website means that you agree to this. How we use cookies.