The Home Renovation Incentive has been extended until December 2016. See below for more details. Further information is available from Revenue.
As this scheme is for a limited period, now is the time to book your Self Storage. Having furniture and household items out of the way while renovation work is carried out, makes it easier to move around the home, and keeps your items clean and protected from possible damage. Phone us on 01 4940000 to book your storage unit.
What is the Home Renovation Incentive?
Home Renovation Incentive (HRI) Scheme is a scheme which will run from 25 October 2013 to 31 December 2016 for Homeowners and from 15 October 2014 to 31 December 2016 for Landlords. The Incentive provides for tax relief by way of an Income Tax credit at 13.5% of qualifying expenditure on repair, renovation or improvement works carried out on a main home or rental property by qualifying Contractors.
How can I make a claim?
Homeowners can claim from 13 January 2015, ROS. This includes claim for works carried out and paid for between 25 October 2013 and 31 December 2013.
Landlords can claim from January 2016 using ROS.This includes claim for works carried out and paid for between 15 October 2014 and 31 December 2014
Who can claim?
Owner occupiers of a main home or Landlords of rental properties (see 1.5.), who pay Income Tax under PAYE or self assessment and whose Local Property Tax and Household Charge obligations are up to date, are eligible. The Homeowner or Landlord must be on Revenue’s Local Property Tax Register as an Owner or joint Owner of the main home or rental property. Landlords must also have registered the tenancy with the Private Residential Tenancies Boa
What type or work qualifies?
Examples of repair, renovation or improvement works that qualify under the Incentive include –
• Painting and decorating
• Rewiring
• Tiling
• Supply and fitting of kitchens
• Extensions
• Garages
• Landscaping
• Supply and fitting of solar panels
• Conservatories
• Plastering
• Plumbing
• Bathroom upgrades
• Supply and fitting of windows and doors
• Attic conversions
• Driveways
• Septic tank repair or replacement
• Central heating system repair or upgrade
• Supply and fitting of built in wardrobes
• Conversion of a residential premises into multiple rental units
• Supply and fit of alarm systems
• Radon remediation works.
The VAT rate on works carried out must be 13.5%.
Is there a minimum spend?
Tax relief can be claimed on all qualifying expenditure, once the Homeowner or Landlord spends over €4,405 (before VAT at 13.5%) per qualifying property. This €4,405 (before VAT) can be the total from any number of jobs on the property carried out and paid for from 25 October 2013 to 31 December 2016 for Homeowners and any number of jobs on the property carried out and paid for from 15 October 2014 to 31 December 2016 for Landlords. While there is no upper limit on expenditure on qualifying works, the tax credit will only be given in relation to a maximum of €30,000 (before VAT at 13.5%) per qualifying property.
If a Landlord is having a rental property converted into multiple rental units, the maximum of €30,000 (before VAT at 13.5%) applies to each of the new rental units.
If a Homeowner or Landlord is having qualifying work done but isn’t spending over €4,405 (before VAT) on the property, it’s still worth choosing a HRI qualifying Contractor and having the work details entered on HRI online. The Homeowner or Landlord may have more qualifying work carried out on the property between now and 31 December 2016. All the spending on the property, added up, could reach the €4,405 (before VAT). It will be very difficult to go back to a Contractor, to try to get him or her to enter details to HRI online, for a job from a year or more ago.
In addition, if a Homeowner or Landlord is using a HRI qualifying Contractor, the Homeowner or Landlord can at least be sure that the Contractor is tax compliant.
All information from www.revenue.ie
