Renovating your home?
The Home Renovation Incentive has been extended to the end of this year. So if you want to make improvements to your home and benefit from the scheme, now is the time to do it
The Home Renovation Incentive was introduced in 2013 to solve three problems: to help the huge number of construction workers who are currently finding it tough to secure work, to decrease the number of construction workers operating on the black market and to enable those who are unable to upgrade their homes for financial reasons to do so.
The scheme essentially works by returning the VAT on any repair, renovation or improvement that is subject to the 13.5 per cent VAT rate. In addition, the minimum cost of your improvements must be no less than €4,405 before VAT. For that level of spending, those claiming the HRI tax credit will be eligible for a rebate of €595.
According to Pat Molan, Principal Officer of the Revenue Commissioner, the most important facet of the scheme, is that the work must be carried out by a tax compliant contractor.
"If a homeowner wants to benefit from the scheme they must ensure that the contractor they have engaged has uploaded the work that they are intending to carry out onto the online HRI system."
The system is set up so that if a contractor is not tax compliant they won't be able to access it.
"It is a good idea to shop around and get several quotes," says Pat. "Ask for references from people whose homes they have previously carried out work on or ask your friends and family for the names of contractors they have used in the past and are happy with."
But what types of work does the scheme cover?
Allowable items include painting, decorating, wiring, conversions, plumbing, attic, extensions, landscaping and septic tank works. And the great thing about this scheme is that it can apply to a large single job or multiple small jobs.
"For example, if you are undergoing a small improvement that wouldn't be sufficient to qualify for the scheme, you can supplement it with additional work carried out later in the year," says Pat
With over 17,000 properties engaged in the scheme, it seems to be benefitting a large number of people across the country.
"The uptake of the incentive has exceeded all of our expectations," says Pat. "The value of the work currently on our system is in the region of €350 million, so people are certainly investing in their properties and reaping the benefits."
So why not come along to the permanent tsb Ideal Home Show and discover how the Home Renovation Incentive could benefit you?
Renovating your home?
Don't forget to claim your VAT back