The Home Renovation Incentive (HRI) scheme is a tax relief intended to assist homeowners who need repair or improvement work carried out.
A Home Renovation Incentive applicant, whether they are a homeowner or landlord, can only submit their primary home or rental property details in order to qualify. Click Here To Go To The Revenue Site For More Details.
The scheme has been active since October 2013 for homeowners, and October 2014 for landlords. The closing date for all applications for the HRI is December 31 2015. However, if a task that requires planning permission is accepted by the relevant authority, the deadline for work to be paid for is moved to March 31 2016.
The scheme only allows for work subject to a 13.5% VAT rate to take place. The works and services carried out by builders qualifies for this lower rate, and includes the likes of extensions, attic renovations, kitchen and bathroom fittings, plumbing, window installations and garden landscaping.
However, goods and services that require a 23% VAT rate are not allowed under the HRI (e.g. white goods, carpets, architect’s fees, furniture). In order to successfully register 23% VAT items onto the HRI, you must include them on the required tasks for the builder and ask them to buy them for you, rather than the other way around.
There are minimum and maximum rates in place that have to be adhered to. Before VAT 13.5%, the lowest cost of work that is eligible is €4,405. No work above €30,000 before VAT is permitted, however.
All applicants must also be fully up to date with their Local Property Tax (LPT) commitments, or arrange to pay the LPT at a later time. Those who are liable to the Household Charge have to be compliant with both payments. Finally, applicants are required to pay their income tax (either through self-assessment or PAYE methods) in order to be considered for the HRI.