Tax Rebates & Refunds

Should I save or spend my tax refund?

February 19, 2013
Posted in Tax Rebates — Written by Jennifer

Receiving news of a tax refund from HM Revenue & Customs (HMRC) can be fantastic, leading many people to immediately start planning what they will do with the extra cash. The main question to ask yourself is – will I save my tax rebate or spend it?

To help you decide whether to save or spend your refund, here are a few things to consider.

Saving your rebate

Putting some money aside for a rainy day or an emergency is always the sensible thing to do, unless of course you have something urgent that the tax rebate money could be very useful for.

Having savings prepares you for any and all emergencies and setbacks that might come your way, such as car repairs or urgent home improvements you may need to pay for in the future. Your tax rebate can go a long way to boosting your savings.

Spending your rebate

Spending your tax rebate is a good idea only if you having something worthwhile to put the money towards. For example, you could spend it on paying all outstanding bills or debts, or in paying for much-needed repairs to your home or car.

It is important to check over your tax rebate carefully when you receive it. A mistake may have been made and you may have to pay some or all of the money back, which is no good if you’ve already spent it all.

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