Get tax back when making home improvements

LAST month Revenue announced an extension of the Home Renovation Incentive (HRI), due to finish at the end of this year, until December 31, 2016. This scheme, introduced in 2013, is the government’s way of encouraging people to use tax compliant contractors, rather than pay cash into the black economy, as many did in the height of the recession.

The minimum spend to qualify for the scheme is €5,000 (incl VAT) which would entitle the homeowner to a tax credit of €595. The maximum tax credit available is €4,050, which equates to a spend of €30,000. You can spend more than this, but you won’t get the VAT refunded beyond that amount. The government believe the scheme has worked as intended, saying when they announced the extension: “the Home Renovation Incentive has continued to be very successful, with works on 36,543 properties notified to Revenue’s HRI online system (as of September 15, 2015). This represents more than €566 million worth of works involving some 5,975 contractors.”

So if you have been considering repairs or renovations to your home, it makes sense to look at the scheme.