Know Your Rights: Home Renovation Incentive

 November 2013

Question

I need to carry out some house repairs. What is the new scheme for home renovation that was announced in Budget 2014?

Answer

The Home Renovation Incentive (HRI) is a new scheme that enables homeowners to claim tax relief on repairs, renovations or improvement work carried out on their homes. The incentive will be paid in the form of a tax credit at 13.5% of qualifying expenditure, which can be set against your income tax over 2 years. You must be paying income tax – under PAYE or self-assessment – to avail of the incentive. You must also be up to date with your Local Property Tax obligations.

Any contractor you use must be registered for Value Added Tax (VAT) in Ireland and be tax-compliant. If several contractors, such as a builder, a plumber and an electrician, carry out qualifying work on your home, you can combine the cost of the works to make up the minimum qualifying expenditure of €5,000 excluding VAT at 13.5%. (The maximum qualifying expenditure is €30,000 excluding VAT at 13.5%).

Repair, renovation or improvement work subject to VAT at 13.5% all qualify for the HRI,  including extensions, garages and attic conversions; the supply and fitting of kitchens, bathrooms and built-in wardrobes; fitting of windows; plumbing, tiling, rewiring and plastering. Work subject to VAT at 23% (such as architect’s fees) is not covered. Neither are items such as furniture, white goods or carpets.

The work must be carried out and paid for between 25 October 2013 and 31 December 2015. Qualifying work between 25 October 2013 and 31 December 2013 will be treated as if it was carried out and paid for in 2014. In general, the tax credit will be payable over the 2 years following the year in which the work is carried out and paid for. If you are a PAYE taxpayer, the amount of the allowable credit will be included in your annual Tax Credit Certificates. If you are a self-assessment taxpayer, it will be incorporated into your tax assessment.

Further information is available on revenue.ie and from the Citizens Information Centre below.

Know Your Rights has been compiled by Dungloe Citizens Information Service which provides a free and confidential service to the public.

Tel: 0761075430 Address: Dungloe Public Services Centre

Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service, 0761 07 4000.

 

Bíodh Eolas agat ar do Chearta: An Dreasacht Athchóirithe Tí

Ceist

Is gá dom tabhairt faoi roinnt deisiúcháin tí. Céard í an scéim nua le haghaidh athchóiriú tí a fógraíodh i mBuiséad 2014?

Freagra

Scéim nua atá sa Dreasacht Athchóirithe Tí (DAT) a chuireann ar chumas úinéirí tí chun faoiseamh cánach a éileamh ar dheisiúcháin, athchóirithe nó ar obair feabhsaithe a rinne siad ina dtithe. Íocfar an dreasacht seo i bhfoirm chreidmheas cánach ar ráta 13.5% den chaiteachas incháilithe, a chuirfear i gcoinne do chánach ioncam thar thréimhse 2 bhliain. Ní mór go bhfuil cáin ioncaim á híoc agat – faoi ÍMAT nó faoi fhéinmheasúnú – chun fáil a bheith agat ar an dreasacht. Sa mhullach air sin, ní mór go bhfuil do chuid Cáin Mhaoine Áitiúla go léir íoctha agat.

Ní mór go mbeidh aon chonraitheoir a úsáideann tú cláraithe le haghaidh Cáin Bhreisluacha (CBL) agus ag comhlíonadh a dhlíthe cánach. Má thugann roinnt conraitheoirí, ar nós tógálaí, pluiméir agus leictreoir, faoi obair incháilithe ar do theach, is féidir leat costas na n-oibreacha a shuimiú chun an caiteachas íosta incháilithe €5,000 a bhaint amach, gan CBL ar ráta 13.5% a chur san áireamh. (Is é an caiteachas uasta incháilithe €30,000 gan CBL a áireamh ar ráta 13.5%).

Déantar obair dheisiúcháin, athchóirithe nó feabhsaithe faoi réir CBL ar ráta 13.5% a cháiliú don DAT, lena n-áirítear síneadh, garáistí agus athchóiriú áiléir; cistineacha, seomraí folctha agus vardrúis ionsuite a sholáthar agus a fheistiú; fuinneoga a fheistiú; pluiméireacht, tíliú, athshreangú agus plástráil. Ní chuimsítear obair atá faoi réir CBL ar ráta 23% (ar nós táillí ailtirí). Níl earraí ar nós troscáin, earraí bána nó cairpéad cuimsithe.

Ní mór go ndéantar an obair agus go n-íoctar aisti idir 25 Deireadh Fómhair 2013 agus an 31 Nollaig 2015. Caithfear le hobair incháilithe idir an 25 Deireadh Fómhair 2013 agus an 31 Nollaig 2013 amhail ar déanta agus ar íocadh aisti i 2014. Go ginearálta, beidh an creidmheas cánach le híoc thar an dá bhliain i ndiaidh na bliana ina ndéantar an obair agus ina n-íoctar aisti. Más cáiníocóir ÍMAT thú, cuirfear san áireamh an méid den chreidmheas incheadaithe i do Dheimhnithe bliantúla Creidmheas Cánach. Más cáiníocóir féinmheasúnaithe thú, cuirfear san áireamh é i do mheasúnú cánach.

Tá fáil ar bhreis faisnéise ar revenue.ie agus ón Ionad um Fhaisnéis do Shaoránaigh thíos.

Chuir Ionad Faisnéise do Shaoránaigh An Clocháin Liath ‘Bíodh Eolas agat ar do Chearta’ le chéile.  Cuireann an tIonad seo seirbhís shaor in aisce agus faoi rún ar fáil don phobal.

Teil: 0761075430 Seoladh: Ionad Seirbhisí Pobal An Clocháin Liath

Tá faisnéis le fáil freisin ar líne ag citizensinformation.ie agus ón tSeirbhís Teileafóin um Fhaisnéis do Shaoránaigh, 0761 07 4000.