RESEARCH from RIFT Tax Refunds reveals that UK taxpayers could pay for more than 40% of their household energy bills next year by applying for a tax refund.
The latest data by RIFT Tax Refunds shows that:
- Today, the average one-year tax refund has climbed to £1,518 – money that could be owed due to taxpayers having overpaid as a result of an incorrect tax code, or money that can be claimed back for work-related expenses such as travel and uniform.
But how far can it actually go when it comes to covering the rising cost of living?
- With the current energy price cap of £1,971 (up to the end of September 2022), the average tax refund would cover 77% of the annual bill.
- Even if the cap rises to £3,549, as it expected to in October, the average tax refund would still cover 43% of a year’s worth of energy.
- The UK’s average monthly mortgage payment is £1,054. This means a tax refund will cover 144% of the cost or, in other words, one and a half month’s worth of mortgage payments.
- Another common concern, and one that’s been widely reported in the past few weeks, is the surprisingly high price of school uniforms.
- On average, it’s estimated that the cost of getting a child equipped to go back to school with a full and proper uniform is £365 – a cost that could be well and truly covered for a family with up to four children with the average yearly tax refund.
- Petrol prices have also soared over the past couple of months. Today, the average price for unleaded petrol is 173.5 pence per litre. This means the average tax refund is enough to purchase 875 litres of fuel.
