Main image upload

February 2016

Question

In relation to the HRI (Home Renovation Incentive) scheme can you please clarify if I can reclaim the VAT retrospectively? I had a a variety of works carried out by a registered contractor in 2014 costing over €5,000 and had window panes replaced by a different contractor in early 2015 costing almost €3,000. Recently I had solar panels installed costing over €4,000 after deducting grant received. I wasn’t aware of the HRI scheme until recently and am wondering if I can apply under the scheme now.

Answer

Yes you can retrospectively claim the tax credits under the HRI scheme. The condition in respect of “qualifying expenditure” remain the same ie, that the works are repair, renovation or improvement works to your principal residence.

To be eligible for the scheme the contractor who undertakes the works needs to be tax compliant.

In order to claim tax credits for the HRI scheme, you need to give the contractor your Property ID (which is included on your Local Property Tax letter).

In addition you need to request that the contractor who undertook the works on each occasion goes onto the Revenues website and enters the details for the works that were carried out for you.

They will also need to log the payments made by you for the works.

Based on the information provided, your total expenditure on the renovation works (assuming that they were carried out by compliant contractors) is over €12,000.

However in order to calculate the tax credit applicable to you, you would need to provide information on the energy grant received for the solar panels and the total cost of this work.

The energy grant will reduce the overall qualifying expenditure amount under the HRI scheme by three times the grant amount and this information is required when the contractor is registering the works on the Revenues website.

The tax credit for qualifying works will be included in your tax credits over the following two years (ie, 2016 and 2017) if the claim is registered this year.

More information can be found on the MediKids website at scsi.ie or the Revenue’s website revenue.ie

Kevin Brady, is a chartered quantity surveyor and a member of the Society of Chartered Surveyors Ireland.