Home Renovation Incentive Scheme (HRI)
Farrelly Developments are a qualifying contractor under the HRI Scheme, and as a result of such our clients are therefore, automatically entitled to apply for this scheme should they themselves also qualify.
How can I find out if I am eligible for HRI?"
You are eligible for the scheme if you do the following:
- Pay tax under PAYE or Self-assessment.
- If your Local Property Tax (LPT) payments are up to date.
- If the work is carried out by a HRI qualifying contractor.
What types of property does the HRI scheme cover?"
New builds and holidays homes do not qualify for the HRI Scheme. The HRI scheme only applies to properties such as:
- The main residence in which you reside.
- A rental property owned by you, which is currently occupied by a tenant.
What is the minimum spend before you can qualify?
The minimum spend is €4,405 before VAT @ 13.5% is added. HRI Tax Credit can be claimed up to a maximum of €30,000 before VAT @13.5% of the total cost of works. Any costs for works above €30,000 will not be accounted for.
What work qualifies for this scheme?
You must pay VAT @ 13.5% on the work done to your property.
Some examples of the qualifying works which apply include:
- Painting, decorating & tiling
- Plastering, plumbing & rewiring
- Fitted kitchens
- Window replacement
- Extensions, driveways and landscaping
- Septic tank repair or replacement
When does the work have to be carried out?
Homeowners can claim for work carried out and paid for from 25th October 2013. Landlords can claim for work carried out and paid for from 15th October 2014. A local authority tenant can claim for work carried out and paid for from 1st January 2017.
Work carried out and paid for after 31st December 2018 cannot be claimed for. If planning permission is required for works to be completed up to this date, you may claim for work carried out and up to 31st March 2019. This is the only exception to this the 31st December 2018 date.
What works do not qualify for this scheme?
Goods and / or Services which are charged at a VAT rate of 23.5% do not qualify. These include:
- Carpets
- Furniture
- Appliances
- Services such as Architects’ fees.
Why do materials I have purchased myself disqualify me for this relief?
Materials that you purchase are charged at 23.5% VAT rates, therefore, it is advisable to purchase materials through your contractor(s) in order to qualify for this scheme. Your contractor will be charged a VAT rate of 13.5% on all goods purchased.
Do Farrelly Developments have to carry out all works required or can I use different contractors?
No, Farrelly Developments do not have to carry out all works required. You may choose to have different works carried out on your property at different times in one year. Together with Farrelly Developmens, you may also choose to use different contractors to carry out work on your home. However, all contractors must qualify as HRI Scheme approved in order to allow you to apply for these tax credits. The total spent in one year must be a minimum of €4,450 (exc. VAT @ 13.5%).
How is the Tax Relief returned to me?
Credits are payable over a two-year period. Therefore, if you have work carried out in one year, the credit is then payable over the following two years after the works have been completed. i.e. if you have work carried out in 2018, the tax credits are returned over 2019 and 2020 tax years.
Can I still claim the HRI Tax credit if I receive other grants?
If you are in receipt of other grants for work carried out the Revenue will reduce the total qualifying cost by three times the amount of the grant.
I am a Pensioner, do I qualify?
In some circumstances Pensioners do qualify for the scheme. This is usually if they are in receipt of both a State Pension and an Employment Pension. We suggest they contact their local tax office for further clarification in relation to such.
How do I claim this tax credit?
Like most things these days, the application process is carried out online. The HRI Tax Credit can be applied for the year after the work has been completed and paid for. However, your LPT (Local Property Tax) must be paid up to date in order for you to access the following services:
If you are PAYE HRI Tax Credit you can make your claim through: myAccount. If you are Self-assessed you can make your claim through: Revenue Online Services www.ros.ie
For further information on any of the above please refer to the Revenue website:
Local Property Tax:
https://www.revenue.ie/en/property/local-property-tax/index.aspx
Links for ‘How do I claim this tax credit?’
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