Last chance to avail of the Home Improvements Grant
Is this one of the best kept secrets in recent years? Many people are still unaware of the government grant that has been available for some time now to offset much of the costs of common home improvements.
It’s a fantastic scheme that allows home owners and landlords to upgrade their houses while getting significant assistance in the form of tax relief. If this is news to you and you are interested in finding out more, you better hurry up! The scheme comes to an end in December of this year.
What is the HRI scheme?
The Home Renovation Incentive (HRI) scheme enables homeowners or landlords to claim tax relief on repairs, renovations or improvement work. This applies to work that is carried out on either their home or a rental property. The work must be completed by tax-compliant contractors. Last year the HRI scheme was extended to local authority tenants who have written consent from the local authority to carry out the works. It has been available from October 2013 and yet many people are unaware that they can claim a tax credit at 13.5% of qualifying expenditure, which can be set against your income tax over 2 years.
Last change to avail of the grant
This is the final year of the scheme and it ends on 31st December for work up to the value of €30,000. A homeowner can have the work completed on their private residence, while landlords will qualify for rental properties once they are registered with the RTB. As this is a tax credit you must be paying income tax to avail of the HRI and be up to date with your Local Property Tax. Likewise, the contractor you use must be tax compliant and you can combine the costs of several contractors if you are getting a variety of work completed on your house. Ideal if you want to reach the minimum qualifying levels.
What work qualifies?
The HRI Scheme covers repairs, renovations and improvement works on the house. This would include new kitchens, bathrooms, extensions, attic conversions and the fitting of new windows and doors. It will also cover smaller jobs such as tiling, plumbing and painting once the total spend meets the required levels. There are many other improvements covered by the scheme and details are on revenue.ie
The qualifying work must cost at least €4,405 before VAT at 13.5%, which comes to a total of €5,000 with VAT included. You will only get the tax credit in relation to a maximum of €30,000 (before VAT) during the period covered by the HRI. The minimum credit is €595, based on the minimum qualifying expenditure of €4,405. The maximum is €4,050 based on the maximum qualifying expenditure of €30,000.
Claiming the credit
You can claim the HRI tax credit after the end of the tax year if your qualifying expenditure has reached the minimum amount of €4,405 before VAT (a total of €5,000) and you have paid income tax. Any unused tax credit can be rolled over into the following year. To claim the HRI credit, use the HRI online system, which you access through Revenue’s my account service or through the Revenue Online Service (ROS).
Many Global Home Improvements customers have already availed of this scheme and saved themselves a lot of money on home improvements. All our products and services are covered under this scheme so our experienced team can advise you regarding work for the HRI scheme. Get in contact with us today for a free quotation.