The home renovation tax incentive (HRI) scheme, Ireland. enables home owners 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% VAT. The Home Renovation Incentive (HRI) will be paid in the form of a tax credit at 13.5% of qualifying expenditure, which can be set against your income tax over 2 years. In general, qualifying work must be done between 25 October 2013 and 31 December 2015.
Deadline: for qualifying work that was carried out and paid for between 25 October 2013 and 10 April 2014, the contractor(s) must record the details on Revenue’s HRI online system by 8 May 2014 in order for the homeowner to be able to claim the credit. Read more on Revenue’s website.
Terms and Conditions of The home renovation tax incentive (HRI) scheme, Ireland
- To qualify for the HRI, you must be an owner-occupier and the work must be carried out on your principal private residence.
- Any contractor you use must be registered for Value Added Tax (VAT) in Ireland and be tax-compliant. R
- The type of work that qualifies for the HRI is repair, renovation or improvement work that is subject to VAT at 13.5%. This includes extensions, garages and attic conversions; the supply and fitting of kitchens, bathrooms and built-in wardrobes; fitting of windows; plumbing, tiling, rewiring and plastering.
- If you are having your septic tank repaired or replaced, or are installing a radon gas mitigation solution, these types of work also qualify for the HRI. Work on driveways and on rainwater harvesting systems can also qualify.
- Work that is subject to VAT at 23% (such as architect’s fees) is not covered. Neither are items such as furniture, white goods or carpets.
- Revenue has published general information about the HRI and specific information for homeowners, as well as a guide for homeowners (pdf)
How to apply for The home renovation tax incentive (HRI) scheme, Ireland
You can claim the HRI tax credit after the end of the tax year if your qualifying expenditure has reached the minimum amount of €4,405 before VAT (a total of €5,000) and you have paid income tax. Any unused tax credit can be rolled over into the following year. 2015 will be the first year in which you can claim a HRI credit. The claims system is due to be available from early 2015.
For you to be able to claim the HRI credit, your contractor(s) must enter details of the work on the HRI online administration system. This system is only accessible to contractors who are registered for VAT and are tax-compliant.
Revenue advises homeowners to log in to HRI online to check that that their contractors have correctly entered details of the works and payments.
You should also:
- Ensure that you have paid or arranged to pay any Local Property Tax (LPT) or Household Charge that is due
- Check that your contractor has a VAT number and is tax-compliant – see Revenue’s FAQs for details of the proof required
- Ensure that the work qualifies – see Rules above
- Keep all supporting documentation – tax clearance certificates, estimates, receipts etc.
- Give the contractor the LPT Property ID of your property but not your PIN or PPSN