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HRI and preliminary tax - when do you "get" HRI benefit?

  • 24-04-2018 2:15pm
    #1
    sapper
    Registered Users, Registered Users 2 Posts: 423 ✭✭


    Hi - I am getting work done on my house and hope/expect to net the max benefit under the HRI scheme which I calculate is EUR30k x 13.5% = EUR4050

    Im also a PAYE worker paying additional income tax via form 12/ROS.ie each year, pretty much the same every year.

    Trying to figure out how long it will take for me to actually "get" the cash benefit of the HRI given its granted over 2 years. Am I right in saying that this will be when I file and pay this year? ie

    I file in Oct for 2017, tax payable will be 2k less than last year (50% of HRI) so I will get a refund of 2k on the preliminary tax paid

    Also for 2018 preliminary tax I know that my tax payable will be 2k less than normal (2nd 50% of HRI) so I can reduce the normal payment down by 2k.

    Or am I being thick in that the benefit is only applied for years 2018 and 2019?


Comments

  • #2
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,434 CMod ✭✭✭✭Pawwed Rig


    For PAYE earners the HRI repayment is often paid by the increase in your tax credits in your case in 2019 and 2020


  • #3
    wiggle16
    Moderators, Society & Culture Moderators Posts: 3,022 Mod ✭✭✭✭wiggle16


    The HRI will have no effect on your taxes until it's either put into your tax credits in 2019 or until you file a tax return for 2019 (in 2020). So it's even worse than you thought.

    Effectively you can forget about making a saving this year, and forget the HRI exists for 2018:

    You pay for the work in 2018. You make your claim online in 2018. Max claim is 4050.

    In 2019, you claim half of it (max 2025) on your tax credit cert, and the second half on your tax credit cert in 2020.

    Or you file a Form 12 for 2019 (in 2020) and claim 2025 HRI on it, and then another Form 12 for 2020 (in 2021) and claim 2025 HRI on it.

    Yes, I know. It's a poison pill.


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