Home Renovation Scheme

Hi

I am currently removed storage heaters and wall heaters from my property.

In its place i am installing a back boiler stove and 7 radiators.

The contractor advised the materials supplier of the order and my partner went and paid. I would have thought these materials fall under the 13.5% VAT rate, the same as the builders costs.

I was looking into whether i can claim a tax credit on the VAT based on the home improvement schemes. Upon reading it states it is only applicable to VAT at 13.5%, the labour costs will not be more than the minimum €4405 but all inclusive materials and labour will come in at about €6500 VAT inclusive. Should these materials not be classed as 13.5%, on revenue it states white goods, furniture etc are not allowed but surely rads, plasterboard and a back boiler stove would not fall under this category.

Any advice would be greatly appreciated, need to make sure i am not chasing my tail on this.

Regards
Kieran

Sleepy

As far as I understand it, in order to qualify for the HRI, your contractor would have had to purchase the materials.

tax_tutor1

Sleepy is spot on.
Assuming your contractor is vat registered it would usually be more effective to get them to purchase the materials, reclaim the vat and then bill you for the total job including materials at 13.5% vat rate (assuming material cost ex-vat not greater than 2/3 of total ex-vat price charged-Vat anti-avoidance rule).
May not be possible to reverse this now.

Right2Write

VAT or sales tax is very simple and logical in theory.............. but in practice and how it's often arbitrarily applied in contradictory fashion is just plain mad.

Mumha

Is there anything you need to do, before starting and completing the renovations (apart from keeping the receipts) ?

Sleepy

Discuss the HRI scheme with your contractors. They need to register the work with revenue in order for you to put the claim in.