OUR new brochure is out now and already lots of people are contacting us as they're planning to renovate their bathrooms over the coming months. It's a fantastic New Year's resolution! We're here to help with any questions you may have. Whether it's decor inspiration or practical advice on creating a space that works for you and your family, we have the answers. One thing we also want to remind you that the Home Renovation Incentive (HRI) scheme is available and will allow you to get those renovations done while keeping some money in your pocket. What's not to love about that?!
What is the Home Renovation Scheme?
Basically you get tax back on qualifying expenditure. The rate is 13.5% and this is set against your income tax over a two year period - effectively meaning it cancels out the VAT costs. It's applicable on work up to a value of €30,000. Definitely not to be sniffed at, and the scheme has been extended until the end of 2018.
Pic credit: Todayshomeowner.comTo qualify for the HRI scheme, there are some boxes that need to be ticked, including:
- You need to be up to date with your Property Tax.
- You must be paying income tax - whether you're a PAYE worker or self-employed, it doesn't matter.
- Your contractor must be VAT registered.
Does a bathroom renovation qualify for the HRI?
Yes. Any renovation or improvements that are subject to 13.5% VAT are eligible. So whether you want to add a downstairs loo or en-suite or give your main bathroom a complete overhaul, the installation of your bathroom products, tiling, plastering, painting etc is covered.
What are the budgetary requirements?
The minimum spend on your renovation must but €4,405, which is €5000 when the VAT is added. The maximum spend you'll be able to claim on is €30,000 before VAT.
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'll get €595 back if you spend the minimum amount.
The cap is €30,000 (before VAT) during the period covered by the HRI, and the credit on this would be €4,050. You can claim the HRI tax credit after the end of the tax year as long as you've reached the minimum.
How to claim:
- Your contractor needs enter the details on the HRI administration system online. The system is only accessible to VAT registered and tax compliant contractors.
- Give the contractor your LPT Property ID but not your PIN or your PPS number.
- To claim the HRI credit, use the HRI online system.
And if you're unsure of anything or if you have any queries or questions contact Revenue.
The scheme, along with our luxury products for less, means you'll definitely save money. It's the perfect opportunity to get the bathroom you've always dreamed of.
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