What is the Home Renovation Incentive?

Revenue released their Home Renovation Incentive system on 10th April 2014. The scheme runs from 25 October 2013 to 31 December 2015.

It provides tax relief to home-owners through an Income Tax credit at 13.5% on repair, renovation or improvement works carried out on their home by qualifying Contractors.

How do home-owners qualify for the HRI?

To qualify for relief, the repair work must cost at least €4,405 (before VAT) and it must be on the main home. If the cost of works exceeds €30,000 (before VAT), a maximum credit of €4,050 will apply. Qualifying expenditure is subject to the 13.5% VAT rate.

Home-owners must have paid their Local Property Tax and Household Charge to qualify for the Home Renovation Incentive.

What are the restrictions on the renovations?

There are a few restrictions on the repairs and renovations under the scheme. First, the contractors must be VAT and RCT-registered, as well as tax compliant, to carry out works under the HRI. The works must be carried between 25 October 2013 and 31 December 2015.
The credit is payable over the two years following the year in which the work is carried out and paid for.  2015 will be the first year for HRI tax credits.

How to claim with HRI Online

The HRI scheme is administered through Revenue’s On-Line Service (ROS) in a dedicated area called HRI Online. All works, payments and claims will entered to HRI online.

HRI online allows contractors to enter details of qualifying works and payments through the Home Renovation Incentive link. The home-owner can then look up qualifying works and payment details through the link.

By viewing the qualifying works and payments online, the homeowner can see that the contractor is a qualifying contractor and does not need to look for tax clearance certificates or any other proof of tax compliance.

Before you log into HRI Online, you will need these documents handy:

  • Quote documents containing:
    • A description of the work
    • The estimated start and end date
    • The estimated cost.
  • Payment documents containing:
    • The payment date
    • The payment amount showing the VAT breakdown

The above content is personal to the writer and should not be taken as legal or tax advice. If you wish to explore the above in more detail please do no hesitate to contact us on 01-2804731 or use the contact box to the right.