Home Renovation Scheme

The Home Removation Scheme

About The Scheme

The Home Renovation Scheme (HRI) was launched by Michael Noonan in Budget 2013. This scheme originally allowed homeowners to claim  tax relief by way of a tax credit at 13.5% of any qualifying expenditure incurred on repair, renovation or improvement work, carried out by tax compliant contractors, on a homeowner’s only or main residence.The scheme was  extended in December 2014 to cover all homes including those rented out by landlords.

The tax credit is granted over the two years following the year the work is carried out and paid for.The scheme allows a VAT clawback of up to €4,050 on the 13.5pc VAT rate applied to work costing between €5,000 and €30,000 and which is carried out between October 25, 2013 and December 31, 2015. To qualify for the HRI you must be a fully tax compliant home owner. If you are self-employed then you must show that your returns are up to date.

Home Renovation Scheme

The applicable costs include: extensions, demolition, the supply and installation of kitchens, bathrooms, storage, attic conversions, plastering, painting, joinery and carpentry decorating, tiling, flooring, landscaping which includes decking and structural work, home office installation, attic conversion, removal and installation of new windows, addition of energy-saving measures like spray-on external insulation, heat recycling systems, boiler installation and upgrade, solar panels. The construction of a garage, and the renovation or resurfacing of a driveway also qualifies.


What You Need

You will need the following from your conntractor or tradesman:

(a) A VAT number – the trader must be registered for VAT and you should check with the Revenue Commissioners that the number is genuine.

(b) A Tax Clearance Certificate for the current tax year – you should ask for a photocopy.

(c) Where relevant a photocopy of the Relevant Contracts Tax (RCT) Certificate which should have been dated within the previous 30 days. This is to show that the trade or individuak has been tax compliant in his employment of his own sub contractors.

(d) Receipts and more receipts. “You will need certifiable proof of every penny you pay over,” says Mr Hollingsworth.


What information you should provide to your contractor or tradesman

You should provide you Property Tax ID number which is included on any local property tax (LPT) letters or email from Revenue. Your contractor will need to enter this number on the Revenue’s electronic HRI system in order to register your work for tax relief. But bear in mind that the onus is on your builder/supplier to submit your data and that of your work to the Revenue Commissioners on time in order for you to qualify for the tax rebate. The revenue site provides a good guide on the scheme for home owners. Once work is completed you must apply for tax relief on the website.
Click here to visit HRI website!