Tax Relief for Work to your Home…
Tax relief is now available for qualifying home owners who carry out improvement works to their home over the next few years. This is great news for those who have been planning work for some time! It’s the Home Renovation Incentive Scheme.
Here’s our 10 part Q+A summarising the essentials of the Home Renovation Scheme…
1. What is the official name of the scheme and what is the official website?
It is called the Home Renovation Scheme, operated by www.Revenue.ie. You’ll find Information for Homeowners here.
2. What incentive is available?
- Tax relief in the form of a tax credit amounting to 13.5% of qualifying expenditure on works carried out to your MAIN home by qualifying Contractors.
3. Who is eligible for the relief?
- You must be compliant with your Local Property Tax and Household Charge obligations and pay income tax either in PAYE or self-assessed form.
- Your Contractor must be registered for VAT in Ireland and must be tax compliant.
4. Is there a minimum amount I must spend to qualify for the Home Renovation Incentive Scheme?
- You must spend a minimum of €4,405 before VAT: this will yield a tax credit of €595.
- You can combine a number of small jobs by different qualifying Contractors to achieve this threshold
5. Is there a maximum amount that qualifies for relief?
- You may spend as much as you wish but the tax relief will only apply to the first €30,000 before VAT: this will yield a tax credit of €4,050.
6. When do I have to carry out the work?
- The tax relief applies to work carried out on or after 25 October 2013 up to 31 December 2015.
- Where planning permission is needed for the work and is obtained by 31 December 2015, work carried out up to 31 March 2016 will qualify.
7. What type of work qualifies for the Home Renovation Incentive Scheme?
- Qualifying work includes painting and decorating, rewiring, tiling, supply and fit of a new kitchen, construction of an extension, garage conversion, landscaping etc.
8. What type of work does not qualify?
- Carpets, furnishings, white goods, services with a VAT rate of 23% (e.g. architects and engineers), materials that you purchase yourself.
9. How do I apply for the Tax Credit?
- The process is still being finalised but Revenue confirm that it will be a fully electronic/online process.
- See www.revenue.ie and keep these points in mind:
- Your Local Property Tax and Household Charge obligations must be in order.
- Your Contractor(s) must be registered for VAT in Ireland and tax compliant (ask for a current Tax Clearance Certificate).
- The work must comply with the qualifying criteria.
- Keep all documents – certificates, estimates, receipts etc.
10. When will I receive the Tax Credit?
- The tax credit is payable over 2 years AFTER the work is carried out and paid for. The first tax credits will be available in 2015.
Don’t start work without a 2 hour House Consultation!
- You’ve worked hard for the money you are going to spend on your home.
- Make sure you spend it in the best possible way by booking a 2 hour House Consultation with me, Eva Byrne.
- I’m an Architect & House Consultant who specialises in 2 hour House Consultations.
- In the course of a consultation, I will work with you to clarify your issues with your home, explore options to find the best solution for you and equip you with the information you need to bring your project to fruition.
- The fee of €250 will not qualify for the incentive scheme but you will be sure that you will be getting your project off to the best possible start!
- Book now by phone at 087 2940805 or by email at info@houseology.ie.
Look forward to helping you make the most of your home whether or not you will be availing of the Home Renovation Incentive Scheme!
Eva
