There’s some great news for any members hoping to get started on turning their house into their dream home, the Home Renovation Incentive (HRI) Scheme has been extended to 2018!
What is the Home Renovation Incentive (HRI) Scheme?
The Home Renovation Incentive (HRI) Scheme provides for tax relief for Homeowners and Landlords 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 much can I qualify for?
The amount of the HRI tax credit depends on the amount spent on qualifying works. Tax relief can be claimed on qualifying expenditure over €4,405 (before VAT at 13.5%) per property. This €4,405 (before VAT) can be the total from any number of jobs carried out and paid for from 25 October 2013 to 31 December 2018 for Homeowners claiming on their main home and on or after 15 October 2014 and up to 31 December 2018 for Landlords claiming on their rental property. 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 property. The lowest tax credit amount is €595 (€4,405 at 13.5%) per property and the highest tax credit is €4,050 (€30,000 at 13.5%) per property.
What is a ‘HRI qualifying Contractor’?
A HRI qualifying Contractor is one who is registered for ROS, VAT and RCT as well as being tax compliant.
What should the HRI qualifying Contractor do before work starts?
- Ask for the Property ID
- Enter the work details to HRI online
- Enter the full estimated cost of the work, even if it’s over €30,000 (before VAT)
Visit www.revenue.ie/en/tax/it or www.citizensinformation.ie/en/housing/housing_grants_and_schemes for further information on The HRI Scheme.
|Home Renovation Incentive (HRI) Scheme Example|
|If a Homeowner or Landlord paid €4,600 (before VAT) to a HRI qualifying electrician for rewiring his or her main home or rental property the tax credit would be €4,600 x 13.5% = €621.
Please note, the cost of your home improvements can be from a number of different jobs, not just one.
Why not have a look and see exactly how much a home loan with Dubco would cost you here.