Homeowners who use a compliant contractor can claim the VAT on their renovations over the next two tax years.
Rates, the qualifying work must cost at least 4,405 before VAT.5, which comes to a total of 5,000 with VAT included.
So it links directly to your Local Property Tax (LPT) status and a claim will not be accepted unless your LPT is up to date.
This system is only accessible to contractors who are registered for VAT and are tax-compliant.You claim your HRI tax credit in January 2015.However, it is possible for private individuals planning a self-build, conversion or renovation project to claim back VAT as long as your project meets the criteria and you follow the correct procedures.We have cases where an outstanding income tax return from a previous year prevented a claim being paid.Sean Nolan, a father-of-three is set to marry his 85-year-old friend to avoid paying a tax bill when he inherits the older man's home.Last month Revenue announced an extension of the Home Renovation Incentive (HRI due to finish at the end of this year, until December 31, 2016.If you can't prove 10 years of non-occupation, then you may still be able to get a VAT reduction through the 'two-year rule which means that contractors can reduce the VAT they charge to 5 on qualifying projects that haven't been lived in for two.Shane Phelan, the Government is backing a strategy to encourage international companies to use Ireland as their go-to location to settle legal disputes in the wake of Brexit.If you using a prefabricated house kit, send in the manufacturer's specification listing all the items in the kit with your claim - it's not necessary to list the items again.Remember: Keep all your receipts and check invoices from contractors to ensure bella rebate macy's they have charged VAT correctly at the appropriate rate.This scheme, introduced in 2013, is the governments way of encouraging people to use tax compliant contractors, rather than pay cash into the black economy, as many did in the height of the recession.There is also detailed information in Revenue's.There are exceptions to these rules.
So if you have been considering repairs or renovations to your home, it makes sense to look at the scheme.
Details of the work For you to be able to claim the HRI credit, your contractor(s) must enter details of the work on the HRI online administration system.