The Home Renovation Incentive (HRI) allows Homeowners or Landlords claim an income tax credit on repairs, renovations or improvement work carried out on their main home or rental property by HRI qualifying Contractors.
The tax credit is based on work subject to 13.5% VAT. The Incentive generally applies to qualifying work carried out and paid for between 25 October 2013 and 31 December 2015 for Homeowners and 15 October 2014 and 31 December 2015 for Landlords.
|Total cost of work including VAT@13.5%||Total cost of work before VAT@13.5%||VAT@13.5% (tax credit)|
|€5,000 *||€4,405 *||€595|
* Minimum qualifying spend per property ** Maximum tax credit per property
The HRI is intended as a support for Homeowners or Landlords who engage only tax compliant Contractors to carry out qualifying work. To achieve this objective, a number of checks have been built in. You need to satisfy yourself that your Contractor is tax compliant and that he or she will tell Revenue online about the work and payments. Revenue also needs to be sure that the work was done and payments were made before giving you the HRI tax credit.
Homeowners or Landlords who have qualifying work carried out and paid for on their main home or rental property and whose Local Property Tax and Household Charge are up to date are eligible to apply.
A HRI qualifying Contractor is a Contractor who is registered for VAT and RCT and is tax compliant.
The following are examples of the types of work covered by HRI:
Furniture, white goods, carpets and work subject to VAT at 23% are not covered by HRI.
Homeowners or Landlords can apply for the HRI tax credit for a single job or multiple jobs. The minimum qualifying spend per property applies to all jobs on the property combined.
HRI operates through HRI online which you’ll find on www.revenue.ie. HRI qualifying Contractors should enter the work details on HRI online before work starts and should enter payment details as they are received. Homeowners or Landlords should check that the work and payments details have been entered on HRI online. Homeowners or Landlords can’t claim the tax credit if the details aren’t on HRI online.
Homeowners or Landlords can claim the tax credit through HRI online the year after the work is carried out and paid for. For Landlords, work carried out and paid for in 2014 is classed as 2015.
For PAYE taxpayers, the HRI tax credit will be included in their tax credits over two years, spread evenly across pay dates each year. For self assessed taxpayers, the tax credit will be included in their self-assessment over two years, half the tax credit each year.
HRI information, which includes guides, videos and FAQs, is available on the Revenue website at www.revenue.ie or you can phone your Revenue LoCall service 1890 333 425.
If you require any further information on our company or any of the services we provide please contact us through our website or call 087 928 73 06.
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