The facts of the Home Renovation Incentive scheme

The Home Renovation Incentive scheme or HRI was introduced by the Government in October 2013 as a way of stimulating activity in the construction sector. 

And despite being in place for over a year, there still seems to be a lot of mystery about the HRI. Simply put, if you’re planning a project on your garden, then the HRI provides an opportunity to retrieve the Vat paid to a contractor, which at the upper level could save you €4,050 on a project which costs €30,000. These kinds of figures are not to be sniffed at — provided you follow the rules.

Vat and how it is returned

The first item for a prospective beneficiary of the scheme is that the Vat is paid to the contractor as per any normal job, but by going through the registration process with the qualified HRI operator, you will receive this 13.5% Vat back over the two following tax years.

Also it is important to note that the benefit is returned in terms of tax credits rather than a cash return.

What to ask a contractor

Make sure to ask a contractor early on in the consultation process if they are registered for the HRI, as once a project is complete it is not possible to make the Vat claim retrospectively.

The project must be registered online before work begins, and each payment by the client will be logged by the contractor into the HRI system. Prior to beginning the work, you can ask the contractor to show you the logged details on HRI online.

What does the client need to provide

All that you need is your Property ID and to make the required payments as agreed with your contractor as any normal project would entail.

Once you have found a contractor who is going to carry out the work through HRI, it is essential to ensure that it’s entered on the HRI website.

To do this, you will need to give your contractor your Property ID. They will lodge all payments through this online system. If you don’t have your Property Number, you can request to have it posted to you via www.revenue.ie

Minimum and maximum spend

The minimum spend to qualify for the HRI is €4,405.00 before tax (€5,000 including Vat @13.5%). The maximum spend is €30,000 before Vat (€34,050 including Vat @13.5%)

Multiple contractors

Register all work to avail of the Vat rebate. It’s important to note that in order to qualify for the HRI minimum spend, you can register more than

one project with Revenue through multiple contractors. In this way, even with a series of smaller projects over two years, you can qualify for the minimum spend.

Dates to remember

Qualifying works must be carried out and paid for by December 31, 2015 — that is the final cut-off date so there is less than a year to use this benefit. If you’re considering work, put you plans in train now.

* For more information on garden concepts and ideas you can contact The Pavilion Garden Centre by visiting www.thepavilion.ie , www.Facebook.com/thepavilioncork  or via twitter @the_pavilion