Bonmahon Joinery welcomes The Home Renovation Incentive ( HRI )....
When Minister for Finance announced details of THE HOME RENOVATION INCENTIVE in the last budget, the news brought a much needed boost to homeowners throughout the country and is a positive step for the construction industry.
The scheme offers PAYE homeowner occupiers a PAYE tax credit against VAT on home repairs, renovations and improvements that they might undertake. This scheme does not apply if you are undertaking work on a new house, a holiday home or a house that is not habitable at the moment. It has to be a principal residence which has the property tax fully paid up.
Contractors must be VAT registered and tax compliant in order to qualify to carry out works under the HRI and Bonmahon Joinery can guarantee qualification in this regard.
Qualifying expenditure is expenditure subject to the 13.5%VAT rate.
The works must cost a minimum of €4,405 (before VAT), which will attract a credit of €595. Where the cost of the works exceeds €30,000, a maximum credit of €4,050 will apply. This translates into a tax credit of between €595 or €4,050, so it’s not going to be a cheque in the post from the revenue. 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 the HRI tax credits.
If Bonmahon Joinery replaces your windows in April 2014 for a cost of €5000 + VAT, we will enter the details to the electronic HRI system.
This will have to be done within 28 days of the work starting. This application form has to include the house owner’s name, assigned ID number, a description of the work, the address, the estimated cost and the anticipated start and finishing dates.
You claim your tax credit in January 2015.
Your tax credit is €5000 x 13.5% = €675
You will receive your tax credit of €337.50 in 2015 and €337.50 in 2016.
If you are doing a combination of qualifying works, you can add these together and claim on the total amount e.g. if you are replacing your windows (costing €3000 + VAT) and then painting the house (costing €2000 + VAT), you can claim on both works (€5000 + VAT) @ 13.5%. It is important to keep records of all documentations - quotations, receipts etc. from your contractors.
The works must be carried out on or after 25th October 2013 and up to 31st December 2015.
So, as well as benefiting from a warm home courtesy of your new Bonmahon Joinery energy efficient windows and doors, you will be reducing your tax bill over the next 2 years.
For more information, please visit The Revenue Website