Home Renovation Incentive Scheme (HRI)
Information for Homeowners
The following information is provided by the Revenue
1. When can I claim the tax credit?
The tax credit can be claimed after the end of the tax year once the payment amount exceeds the minimum of €5,000 (excluding VAT).
2. How will the tax credit be given?
If you are a PAYE taxpayer the amount of the allowable credit will be included in your annual Tax Credit Certificates for the two years following the year in which the work is carried out. If you are a self assessment taxpayer it will be incorporated into your tax assessment for the two years following the year in which the work is carried out.
3. Can I claim a tax credit under the incentive as well as claiming and receiving an SEAI Grant or an Insurance settlement?
No. Any grant paid or insurance settlement will be excluded from “qualifying expenditure”. Qualifying expenditure will be reduced by three times the amount of the grant payment or the full amount of the insurance payment.
4. If the principal private residence is jointly owned, can each owner claim the maximum tax credit?
No. The maximum tax credit applies to the Property but Homeowners can opt to split the tax credit between the owners based on qualifying expenditure incurred by each owner.
5. If the Homeowner doesn’t pay tax, can someone else pay for the work and claim the tax credit?
No. The tax credit is only available to the Homeowner. Where there are joint owners and only some of the owners pay tax, the tax credit can be claimed by those paying tax based on qualifying expenditure incurred by them.
6. If the Homeowner doesn’t pay tax but pays USC, can the credit be claimed?
No. The tax credit is only available on income tax paid.
7. I am a Homeowner, how will I know if the Building Contractor is tax compliant?
You should ask to see the Building Contractors up to date (within the last 30 days) Notification of Determination of RCT Rate showing zero or 20% RCT Rate which means they are tax compliant. If the Building Contractor is not tax compliant, they are not eligible to operate under the incentive and any work carried out by them will not qualify under the incentive. Transitional arrangements – an in-date Tax Clearance Certificate is also acceptable until such time as Revenue’s new online system is in place.
8. How can I check that the Building Contractor is operating the incentive correctly?
Revenue’s new online system will allow Homeowners view transactions entered by the Building Contractor. Transitional arrangements – you should ensure the Building Contractor is tax compliant (See 2.7.) and you should retain copies of all supporting documentation.
9. I haven’t filed an LPT Return or paid LPT, what should I do?
You can file your LPT Return and arrange your LPT payment online at LPT online using your Property ID and PIN. Alternatively, if you wish to file and arrange payment by telephone or if you have any queries about filing the Return or about payment options, you can telephone the LPT Helpline at 1890 200 255.
10. I haven’t paid the Household Charge, what should I do?
You can pay the €200 arrears by any of the following methods:
By cheque, postal order or similar which should be sent to LPT Branch, Revenue Commissioners PO Box 1, Limerick. We recommend that customers note their Property ID and PPSN or tax reference number on the back of the cheque or postal order
By calling the LPT Helpline 1890 200 255 and paying by debit or credit card
By accessing the LPT online system on Revenue’s website www.revenue.ie using your PPSN, Property ID and PIN, and choosing from the available payment options.
11. Will the value of my Property for LPT purposes change as a result of the repair, renovation or improvement work?
No. The valuation of your Property for LPT purposes on 1 May 2013 will stay the same for 2013, 2014, 2015 and 2016 no matter what improvements you make to your Property.
25 October 2013