HRI for homeowners and landlords

Updated on April 4, 2022

Overview

Note

After December 31, 2018, you cannot claim for any work done or paid for after that date.

Planning clearance must have been granted by December 31, 2018, in order for this deadline to be waived. Doing work between January 1, 2019, and March 31, 2019, is eligible for the tax break.

Homeowners, landlords, and renters of local authorities can all benefit from the Home Renovation Incentive (HRI), which reduces their taxable income. Repairs, renovations, and improvements to your primary residence or rental property are eligible for the HRI Tax Credit.

To qualify for HRI, you must meet the following requirements:

Under either PAYE or self-assessment, you must pay taxes.
There should be no arrears on your local property tax payments (LPT) (this does not apply if you are a local authority tenant)
HRI-qualified contractors must do any work on your home.
Homeowners and landlords can enrol in the HRI solely through the HRI website. Use myAccount to claim the HRI Tax Credit if you pay PAYE taxes. Use Revenue Online Service (ROS) to claim the HRI Tax Credit if you pay your taxes by self-assessment.

The Revenue office should be contacted in the event that you are a local authority renter.

How does HRI work?

It is possible to receive a tax credit of 13.5 percent of the total cost of repairs and improvements through the HRI. Certain sorts of work must be done on a certain type of property in order to receive the credit. There must be a qualified contractor involved in the project.

The HRI Tax Credit amount you are eligible to receive is based on the overall cost of the project. The HRI Tax Credit Value section has more information on these expenses.

What type of work qualifies under HRI?

To qualify for the tax relief, you must have paid Value-Added Tax (VAT) at 13.5% on the work done to your qualifying property. Here are some examples of qualified works:

painting, decorating and tiling
plastering, plumbing and rewiring bathroom upgrades fitted kitchens window replacement extensions and attic conversions
insulation for garages, driveways, and landscaping of sewage tanks
Non-qualifying work
Some goods and services cannot be included in your claim for tax relief. These are goods or services that are provided by your contractor with a VAT rate of 23%. Products and services that don’t meet the criteria include:

Architects’ costs, as well as the cost of carpets, furniture, and other appliances.
If you buy materials yourself, for example, paint or tiles, you cannot include them in your claim for tax relief.

What type of property qualifies under HRI?

A property that is undergoing repairs or renovations is eligible for the HRI programme. Either of the following is required of the property:

your primary residence is a rental property that you own and live in. Within six months of the completion of the work, this must be occupied by a tenant and registered with the Residential Tenancies Board.
Non-qualifying characteristics
Holiday houses and new constructions are not eligible for HRI.

Are you listed as the property’s owner or co-owner with the IRS?
Property owners are listed in Revenue’s local property tax (LPT) registry. If you have received any LPT contact from Revenue in your name, you are on this list.

It is possible to become an owner or part owner of real estate even if you are not on the LPT registry by:

online and calling the LPT customer service number.
If you haven’t paid your LPT yet, you can do so by submitting an LPT refund.

If your home is shared by multiple people,
The HRI Tax Credit can be claimed by both owners of a property if the property is jointly owned. The property is subject to a tax credit cap. Owners receive a portion of the total tax credit based on the costs they have incurred.

When does the work have to be carried out?

Assuming you’re a homeowner, you can claim for work done and paid for after October 25, 2013, if you meet the requirements. Landlords can begin submitting claims for work completed and money paid for on or after October 15, 2014. If you are a tenant of a local government agency, you are entitled to compensation for work done and paid for beginning on January 1, 2017.

After December 31, 2018, you cannot claim for any work done or paid for after that date.

Planning clearance must have been granted by December 31, 2018, in order for this deadline to be waived. Doing work between January 1, 2019, and March 31, 2019, is eligible for the tax break.

Value of the HRI Tax Credit

The HRI Tax Credit (Home Renovation Incentive) requires a minimum investment of €4,405 per qualifying property to be eligible. This is before the 13.5 percent Value Added Tax (VAT) is applied. Depending on the scope of the project, the total cost can be a single work or a series of smaller jobs. Qualified contractors can also perform this task. Within the allotted time frame of the incentive, any work that you claim must be completed and paid for.

Up to a maximum of €30,000 can be claimed in HRI tax credits. This amount does not include the 13.5 percent VAT. Work on your home may cost you more than this. If this is the case, all funds in excess of €30,000 will be disregarded.

A single rental property can be divided into a number of rental properties. HRI is administered to each of these sections individually. Each rental unit is limited to a combined total of €30,000 before VAT is applied at a rate of 13.5%.

What is the HRI tax credit worth?

HRI credit amounts are determined by:

whatever award, insurance, or compensation claim you may be eligible for as a result of your qualifying works.
The minimum tax credit for a property is €595 in the absence of a grant, insurance, or compensation claim. The maximum tax credit is €4,050, which is calculated as follows: €30,000 x 13.5%.

Make a donation

The total qualifying expenditure will be reduced by three times the grant amount if you get a grant for qualifying work. For instance, the Sustainable Energy Authority of Ireland offers grants for attic insulation (SEAI).

Example 1: For external wall insulation, Catherine spent €10,000 (including VAT at 13.5%).

An amount totaling €2,700 was awarded to her by the SEAI.

Expenditures that qualify for tax deductions are figured up as follows:
Qualifying work that Catherine put in

(VAT included at 13.5%)

€10,000

a threefold decrease in size Received a SEAI grant

A total of €2,700 x 3

€8,100

expenditure that qualifies

(VAT included at 13.5%)

€1,900

Expenditures that qualify for financial aid.

Amount (before tax)

1 900 euros multiplied by 100 is 113.5

€1,674

Total tax credits that Catherine will be eligible for

13.5 percent of €1,674

€226

Claims for protection and/or restitution
Any insurance or compensation payments you receive will reduce your total qualifying expenditure.

The following is an example.

Choosing a HRI contractor

To qualify as an HRI contractor, one must be a member of the HRI programme. In other words, the contractor is VAT-registered and tax-compliant.

Before doing any work, make sure that your contractor is a qualified HRI contractor. You will not be able to claim the HRI tax credit if your contractor is not an HRI qualifying contractor.

How to determine if a contractor meets the requirements
When you check HRI online, you’ll see if your contractor qualifies as an HRI qualified contractor. You can tell if a contractor is qualified by looking at the work they’ve done.

Contractors that aren’t HRI qualified will be unable to enter HRI information online.

What you need to do before you start your workday

Before you do any work, you must do this:

the contractor should be informed that you intend to claim for the HRI Tax Credit
ask the contractor if they are a qualified contractor for the programme and get their confirmation.
Request that the contractor use HRI to enter the information of the project.
Give your contractor a copy of your Property ID (found on your Revenue Department’s LPT letters).
Inform the contractor if the property is rented out.
Your contractor has a duty to fulfil
The details of the task must then be entered into HRI online by the contractor. Make sure this is done before any construction begins on your home. They must also input their payment information when you make them.. A failure to comply by the contractor will result in your inability to claim the HRI Tax Credit.

Inhabitants of public housing facilities
Prior to doing any work, you must contact your local authority’s revenue department.

How to claim the HRI Tax Credit

When can I claim Home Renovation Incentive (HRI)?

To be eligible for reimbursement, you must file your claim no later than four years after the year in which you were paid for the qualifying work.

To become a member of HRI, how do I go about doing so?

HRI’s online portal is the only way to file a claim. The following are the methods you can use to get to the service:

MyAccount, if you pay tax through PAYE, by clicking on “Home Renovation Incentive” on the “Property Services” card Revenue Online Service (ROS) if you pay tax through self-assessment. .
Note

You will only be able to see the HRI tab if you are enrolled for Local Property Tax (LPT).

To be eligible for HRI, you must have no outstanding LPT or Household Charge returns or payments.

How do I get my HRI Tax Credit?

The two years after the year in which the work was paid for, you will receive your HRI Tax Credit. Both years will receive equal credit for the work. If you paid enough tax in either of the two years to be eligible for a refund, then you may be able to collect it.

Credits that aren’t used up in those two years will be carried over to future years. PAYE and self-employed taxpayers alike can benefit from this information.

The Revenue office should be contacted in the event that you are a local authority renter.