Home Renovation Incentive Scheme
What are you entitled to?
The scheme allows you to claim back VAT incurred on home renovations, which equates to a 13.5% discount on works such as re-roofing, upgrading insulation, painting, re-wiring.
Work costing from €4,405 – €30,000 qualify. However you can use several works to make these figures. IE, you don’t have to spend €4,405 on one job to qualify, they all add up! The minimum amount of VAT you can claim back is €595.00, the maximum is €4,050.00.
You must also have paid your property tax and household charges in order to qualify. The home renovation tax relief is available until December 31st 2018.
What renovations qualify?
A wide range of works qualify for the relief according to the Revenue Commissioners. These include: painting and decorating; rewiring; extensions; garages; attic conversions; supply and fitting of kitchens; bathrooms and built-in wardrobes; window fitting; septic tank repair or replacement; driveways and plastering.
Anything that is subject to VAT at 23%, such as carpets, furniture and professional’ fees will not be eligible.
You are encouraged to contact your local Revenue office to check if the work you are seeking qualifies.
When will I get the tax back?
The tax relief is payable over the two years following the year in which the work is carried out and paid for.
Does work need to be carried out by a contractor?
Yes, the contractor you choose must also be VAT and RCT registered and tax compliant. There is no obligation under the scheme to get all the work carried out by one contractor. You can accumulate several smaller jobs, as long as the total cost of the qualifying work exceeds €5,000 (excluding VAT) over the course of a year.
Can I qualify for the HRI scheme and receive an SEAI grant?
Yes you can, but not the full cost of the project.
According to Revenue, you will be able to claim twice on eligible work. However, any grant you receive will be disregarded from the qualifying amount by a multiple of three. So, for example, if you spend €10,000 on external wall insulation, you will be entitled to a grant of €2,700.
This means that you will only be entitled to claim VAT relief on €1,900. So the total cost of the insulation to you would be €7,043. The final figure includes the grant and tax relief of €256.
Similarly, if you receive an insurance payment which you put towards the cost of an upgrade, the full amount of this payment will be disallowed.
How do I make a claim?
With this scheme, it’s up to your contractor to notify revenue and fill in the relevant paperwork. However, you need to supply the contractor with all your details, IE property tax details. It is also possible for you, the homeowner, to view and check these details through revenue online services.
Further details on the scheme can be found on the Revenue Commissioners’ website here.
For more information or to get help with your next project, get in touch.