Don't understand HRI calculation

Ludikrus

Hi,

Can anyone help me to understand why the Total Spend here is €5,502?

Our total refurbishment costs were €10,782.27 - which looks like it was correctly entered by the contractor as Payment Total. So I don't get why it's then €5,502 @ 13.5% and not €10,782.27 @ 13.5%?

ArrBee

Did you pay in installments and the 5502 is the 1st payment that has gone all the way through and you need to wait for the rest to show?

It does look odd though, for sure

ArrBee

OK,
So I just looked at mine and its off too.

I think the reason though is because the HRI is only applicable to work that attracts the 13.5% VAT.
It would seem that half of your work attracted the higher VAT so is ineligible for HRI???


EDIT:

Scratch that, you can go into each job and see the 13.5% vs 23% break down, and mine doesn't show any 23% amounts so that's not the reason....
I'll watch this thread though!

Thanks.

Ludikrus

We paid the contractor €5,502 but bought all the stuff ourselves. He said to send him on what we spent on furnishings and he would add it to his invoice and enter the details online. So €5,502 is what we paid him but the cost of the refurb was €10,782.27.

ArrBee

Ludikrus wrote: »

We paid the contractor €5,502 but bought all the stuff ourselves. He said to send him on what we spent on furnishings and he would add it to his invoice and enter the details online. So €5,502 is what we paid him but the cost of the refurb was €10,782.27.

You would have paid 23% on the things you bought though.

My understanding is that your contractor registers the receipt of payment with revenue too. so he can't just bump the cost up in the system without receiving a corresponding amount (and paying tax on it)

I think I have something similar although the amount doesn't line up 100%
It's 9.99 out.

Ludikrus

Okay, I didn't know you could click on a job and see the breakdown. Thanks for that .

Now this is what I see. So am I not entitled to anything back on the VAT @ 23% portion?

The Diddakoi

Ludikrus wrote: »

Okay, I didn't know you could click on a job and see the breakdown. Thanks for that .

Now this is what I see. So am I not entitled to anything back on the VAT @ 23% portion?

https://www.revenue.ie/en/property/home-renovation-incentive/hri-for-homeowners-and-landlords/index.aspx


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%. Examples of goods and services that do not qualify include:

carpets
furniture
appliances
services such as architects' fees.

If you buy materials yourself, for example, paint or tiles, you cannot include them in your claim for tax relief.

ArrBee

From memory, no. you are not.
Just double check in the FAQ for HRI

I was looking into it before Christmas as there was a job I was going to try and squeeze in before end of year. didn't pan out, but the contractor had quoted VAT @23%; and I remember seeing in the rules that it only work attractive 13.5% was eligible.

Turns out he had made a mistake and it was supposed to be 13.5% but we still ran out of time to put it through HRI.