Home Renovation Incentive

karlitob

Hi all,

Getting a wardrobes etc put in - the carpenter says he's not registered for the HRI. He's VAT registered etc - no cash job, all above board.

But is it true to say, that I can't access this grant since he hasn't registered. He more or less said its not worth his while - no increase or decrease in work with it.

http://www.revenue.ie/en/tax/it/reliefs/hri/

Gumbo

karlitob wrote: »

Hi all,

Getting a wardrobes etc put in - the carpenter says he's not registered for the HRI. He's VAT registered etc - no cash job, all above board.

But is it true to say, that I can't access this grant since he hasn't registered. He more or less said its not worth his while - no increase or decrease in work with it.

http://www.revenue.ie/en/tax/it/reliefs/hri/

What's the value of the works?

It's more admin work for the guy supplying the wardrobes but he is probably not use to it. Maybe offer to sit down with him and do it together, but he has to register every payment going forward.

karlitob

kceire wrote: »

What's the value of the works?

It's more admin work for the guy supplying the wardrobes but he is probably not use to it. Maybe offer to sit down with him and do it together, but he has to register every payment going forward.

Some work 3 yeas ago - 5k and upcoming work now 9k.

I understand his reasoning but its mad to think that my right to access VAT reduction is dependent on somebody who is fully tax compliant not really interested in doing it. That's not a comment on the carpenter,

Surely I should be able to submit a VAT receipt to revenue and that should be that. It proves his/her tax compliance and proves how much I spent? The problems with overcharging are always going to be there.

Gumbo

karlitob wrote: »

Some work 3 yeas ago - 5k and upcoming work now 9k.

I understand his reasoning but its mad to think that my right to access VAT reduction is dependent on somebody who is fully tax compliant not really interested in doing it. That's not a comment on the carpenter,

Surely I should be able to submit a VAT receipt to revenue and that should be that. It proves his/her tax compliance and proves how much I spent? The problems with overcharging are always going to be there.

The work previously is irrelevant now.
The contractor has to register the job on the revenue site before the works start. But the new 9k works will deffo qualify.

The contractor has to initiate the claim so I suppose until people vote with heir feet and tell them that I'm not using you because of their non HRI sign up then they may reconsider doing it.

scwazrh

He may not be able to register for HRI . To qualify a contractor has to be vat reg and qualify for either 0% or 20% rct tax rate . If all taxes are not addressed then a tax rate of 35% will be applied to the contractor from the revenue and this will stop him from registering with the HRI scheme.

karlitob

scwazrh wrote: »

He may not be able to register for HRI . To qualify a contractor has to be vat reg and qualify for either 0% or 20% rct tax rate . If all taxes are not addressed then a tax rate of 35% will be applied to the contractor from the revenue and this will stop him from registering with the HRI scheme.

Thanks for that. Appreciate all the feedback.

Still not sure it's fair that the person who pays the VAT is dependent on whether someone registers or not. I wonder how low the uptake is.

sydthebeat

karlitob wrote: »

Still not sure it's fair that the person who pays the VAT is dependent on whether someone registers or not.

???
Really?

How can you pay vat to someone who is not registered for vat?

karlitob

sydthebeat wrote: »

???
Really?

How can you pay vat to someone who is not registered for vat?

As I've said in my earlier post - if I receive a VAT receipt from him/her then I will have done my part as a taxpayer. Revenue can follow up if there is a VAT issue. You receive a VAT receipt from spar, from woodies, from any other shop. How do you know if they are or aren't registered for VAT?

All businesses must be registered for VAT and pay tax. If I as a taxpayer receive a tax benefit in the form of HRI then I shouldn't be penalised because someone isn't bothered to do it. As a responsible taxpayer I do not pay cash in hand. I ask for a VAT receipt. While I accept that revenue need some way of preventing people putting up huge invoices it cannot be a voluntary system for them to engage.

sydthebeat

sorry i picked up the "not registered" bit incorrectly.

i suppose the attempt here is to get as many small contractors properly tax compliant, with the assumed carrot that registered contractors would get more work than the unregistered ones.

karlitob

sydthebeat wrote: »

sorry i picked up the "not registered" bit incorrectly.

i suppose the attempt here is to get as many small contractors properly tax compliant, with the assumed carrot that registered contractors would get more work than the unregistered ones.

Apologies - a little defensive my end. Thanks for the reply.

thecommander

karlitob wrote: »

Thanks for that. Appreciate all the feedback.

Still not sure it's fair that the person who pays the VAT is dependent on whether someone registers or not. I wonder how low the uptake is.

Pick someone that is?

karlitob

thecommander wrote: »

Pick someone that is?

Obviously but I think I've made the point already - it shouldn't be dependent on whether a contractor is bothered to go through this process or not for me to claim a tax benefit that I as a tax payer am paying for. Furthermore, there is no list for me to chose from. And finally, I like this guy and his work.