Have you been looking to renovate your home recently? Well, now is the perfect opportunity to consider upgrading your home with the extension of the Home Renovation Incentive (HRI) Scheme.
The scheme has been extended by two years to the end of 2018 and allows homeowners to claim tax relief by way of an income tax credit at 13.5% for qualifying expenditure.
How Does It Work?
The amount that you can claim with your HRI tax credit depends how much you spend on your home improvement. You can claim for your HRI tax credit once you spend more than €4,405 (before VAT) on renovation works. There is no limit on how much you can spend but you can only claim the HRI tax credit on amounts up to €30,000.
The lowest HRI tax credit amount is €595 per property (€4,405 at 13.5%) and the highest HRI tax credit is €4,050 (€30,000 at 13.5%).
How Do I Avail of The Scheme?
To avail of the scheme, you need to register online on revenue.ie and engage with a tax complaint contractor. The VAT rate on works carried out must be at 13.5%. There are a number of improvement works that qualify as part of the scheme, including Painting and decorating, Plumbing, Fitted kitchens, Attic conversions and Landscaping.
Before starting any renovation work, you should check to see if your contractor is registered for VAT and is tax compliant. This is really important as you will need the contractor to enter details of work on the HRI online system in order to avail of the tax credit.
Upgrading your home can be a stressful time but applying for a loan shouldn’t be. With Chill Money, we make it easy to take out a loan for the important stages in your life. Whether you are looking to paint up the house or convert the garage, Chill Money is there to support you along the way. Applying for a loan only takes a few minutes! Get a Quick Quote today!