There is still time to reclaim the VAT on your Pod Factory Garden Room POD through the Government’s Home Renovation Incentive Scheme (HRI) the Home Renovation Scheme is ending on the 31st December 2018 and so we require your application by October 2018.
The HRI scheme enables homeowners or landlords to claim tax relief on repairs, renovations or improvement work that is carried out on their main home or rental property by tax-compliant contractors and that is subject to 13.5% VAT.
To qualify for the HRI as an owner-occupier, the work must be carried out on your principal private residence, so the Garden room PODS need to be part of your principle residence. Landlords can also qualify in respect of work done on their rental properties – so if you are purchasing a garden room as a rental property whether you are a homeowner or a landlord, you must be up to date with your Local Property Tax obligations, and you must be paying income tax – whether under PAYE or self-assessment – to avail of the HRI.
The HRI is 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. This effectively reduces the rate of VAT to zero on qualifying work, up to a value of €30,000. The maximum Incentive is therefore €4,050. The work must be done by a qualifying contractor in order to claim back the money.
Please note that In order to qualify for the HRI, the following need apply:
Before any work begins, you should:
The contractor must then enter the details of the work through HRI online. It is up to you to confirm that the contractor has done this before the work begins. They must also enter payment details as you make them.
For more information you can download the HRI summary provided by Revenue.ie.