Would you like to save money on home improvements? You can still save up to 13.5% of the cost of home improvements or repairs if you get the work completed by December 2018. The Home Renovation Incentive scheme has been in operation since 2013 and is due to end soon so if you have been planning to get a new kitchen or bathroom, now is definitely the time.
Am I Eligible?
There are a few criteria. You must be the owner occupier or a non corporate landlord. You must be a tax-payer (either PAYE or self assessed). Your Local Property Tax payments must be up to date and the renovations or improvements must be carried out by contractors who are approved for HRI work. The builder or company doing the work must be vat registered and fully tax compliant in Ireland.
What Renovations are Eligible?
To qualify for the tax relief, you must have paid the VAT of 13.5% on the work done to your qualifying property. Examples of qualifying works include:
- painting, decorating and tiling
- plastering, plumbing and rewiring
- bathroom upgrades
- fitted kitchens
- window replacement
- extensions and attic conversions
- garages, driveways and landscaping
- septic tank repair or replacement
There are some add-on exceptions that you should be aware of. Some goods and services carry a VAT rate of 23% and hence, they are not eligible. These include carpets, furniture, kitchen appliances (this also includes sinks, taps and extractor fans) and architect fees.
Some items are eligible if provided by the builder, tiler or decorator, but if you purchase the paint or tiles yourself, you cannot include them in your claim.
When Do I Receive the Refund?
You don’t get the 13.5% back immediately I’m afraid so do remember that for when you are doing your costings and budgets. The Home Renovation Incentive Tax credit will be provided over the two years once the work has been completed and you have submitted the application. The credit will be divided equally between the two years. This is provided you have paid enough tax in each of the two years to claim it back. If the full use of the credit cannot be made in those two years, the credit will be carried forward to later years.
What’s the Minimum and Maximum?
You need to spend a minimum of €4,405 excluding the 13.5% VAT on qualifying expenditure. For example, if you are getting a new fitted kitchen, the qualifying expenditure will be the fitted kitchen cupboards but not the appliances, sink, taps or extractor fan. If the tiling, decorating and electrical work is carried out by qualifying contractors, they will also be eligible. If you spend €5,000 excluding VAT, the tax credit due is €675.
The maximum tax credit per property allowed is on a total spend of €30,000.
What Should I Do Now?
Once you’ve decided on the work that you’d like to complete before the end of the calendar year, you need to get quotes so you can budget accordingly. You will receive up to four quotes from rated tradesmen from our website by providing your details (and the details of the work required) on our website so it’s a good place to start. If you are visiting a kitchen or bathroom showrooms, map out your kitchen before you go, including marking the placement of doors, windows and current plumbing and cooking positions.
It really makes sense to get the work done now and enjoy the tax credits over the next two years. Wouldn’t it be lovely too to have a new kitchen, bathroom, windows, driveway or an insulated attic by Christmas?