Home Renovation Incentive Scheme
The Home Renovation Incentive (HRI) enables homeowners and landlords to claim tax relief on repairs,renovations or improvement work that is carried out on their homes by tax-compliant contractors and is subject to 13.5% Value Added Tax (VAT). The Home Renovation Incentive is given in the form of a tax credit at 13.5%of qualifying expenditure, which can be set against your income tax over 2 years.
Most types of trade qualify (charging 13.5% VAT) and the total of ALL work carried out between now and December 2018 qualifies.
To qualify for the HRI, you must be up to date with your obligations
under the Local Property Tax and, if applicable, the Household
Charge. You must be paying income tax – whether under PAYE or
self-assessment – to avail of the HRI.
Any contractor you use must be registered for VAT in Ireland
and be tax-compliant. If several contractors carried out work for you,
such as a plumber and an electrician, you can add all these costs.
The type of work that qualifies for the HRI is repair, renovation or
improvement work that is subject to VAT at 13.5%.
In general, the work must be carried out and paid for between
25 October 2013 and 31 December 2018.
Important: For all qualifying
work you can only claim the credit if your contractor has recorded
the details on Revenue’s HRI online system. The tax
credit will be applied over the 2 years following the year in which
the work is carried out and paid for. If you are a PAYE taxpayer,
the amount of the allowable credit will be included in your annual
Tax Credits for the 2 years following the year in which the work
is carried out and paid for. If you are a self-assessment taxpayer,
it will be incorporated into your tax assessment for the 2 years
following the year in which the work is carried out and paid for.
You will find more details following this link: Home Renovation Incentive by Revenue
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