Home Renovation Incentive Scheme 2014-2015


#1

revenue.ie/en/tax/it/reliefs … ntive.html

Revenue have now added more detail on how this scheme will work

there is more via the link…


#2

So with this wonderful scheme:

  1. You still have to have the cash upfront to pay the cost + vat.
  2. The government holds onto 100% of your cash for 1 year and 50% of it for the next.
  3. Presumably if you lose your job in the following two years you can kiss the tax credit goodbye.

OR… you can just pay the builder cash and keep the vat in your pocket, just like most people do now.

Though I suppose with big jobs, if you have the cash, it would make some kind of sense as you can go with whoever you like and not just the lads who will do cash jobs.


#3

What odds builders pricing the 13.5% “rebate” into quotes already? It’s like the first-time buyers grant all over again, a bonus for gougers.


#4

The relatively small amount to be saved and the delay in claiming mean it’s unlikely to be ‘priced in’ by builders. It’s a minor incentive to get home improvements done, and a minor incentive to go with a tax-compliant builder, but it is probably overall a positive move.


#5

What would the reason be for spreading the rebate over 2 years?


#6

Its going to be a quiet last quarter of 2013 for builders.


#7

So they can cancel it after 1!


#8

They’re banking on a lot of it happening in the first year. But they want to even the budget cost out.


#9

:laughing:


#10

Feck - we just spent 5K on a new bathroom…


#11

The more I look at it the more this scheme just annoys the hell out of me…

Either

The Government is so seperated from the real world of how the Irish economy works that it thinks this scheme might actually make a difference

Or

This is a classic Public Service strategy of “Its not important to do something about the problem, its only important to appear to be doing something about the problem”.

I think its more the latter. I can imagine FG/Lab govt ministers, when challenged on radio talk shows about the vast amounts of tax revenue being lost to the black economy and the governments failure to tackle this, can become indignant, nay outraged…sure didnt we introduce the Home Renovation Incentive Scheme…


#12

Spot on except for the last point…

The way I see, even for big jobs, the cash guy can still (potentially) vastly undercut due to (i) (potentially) not paying income tax and (ii) have the people he/she employs might hypothetically be on the dole.

The other point…have you ever had to claim a tax refund. I did so this year, I found it an admin nightmare, to-ing and fro-ing with revenue…not knowing how they might ‘interpret’ things…let along spending 15 minutes on hold waiting to speak to someone to find out why there has been no response to your application.


#13

I’ve gotten a few tax refunds over the years, one as recent as yesterday for a return submitted on Monday. Revenue are incredibly efficient when it comes to most of them.
Contrasting that to when I had a liability for a type of tax I hadn’t previously hit and thus had no payment methods registered (Read I as a limited company). Literally took months of back and forth to be allowed to pay it. Even more annoying was that they sent a tax refund during that time that would have more than covered the amount they said we owed and wouldn’t offset it.


#14

Disgree - for a big job (say 100k upwards) there’s no way I’d trust it to a cash-in-hand merchant, even at 20 or 30% less. I’d want a fully compliant builder contractor (with full insurance). Less chance of a botched job and I can come after him if he does botch it up.


#15

I suspect some “tax-complaint” guys have employees on the dole too. Harder to do of course.


#16

Took 2 letters & 3 emails to get my tax credits in order this year. Revenue miscalculated them twice - it got to the stage that I sent them my calculations as to what my credits / thresholds should have been and they finally adjusted them to the correct levels.


#17

Fair point.


#18

Correct. Never hire someone you cannot sue…


#19

Question: does this include gardens, does anyone know?


#20

Even for small jobs gas contractors need to be registered with Board Gais and electricians with RECI - can you expect this from cash in hand merchants? Board Gais will insist on a cert from a registered contractor before they turn on your gas.

Also if you are financing your works via a bank loan or mortgage, the banks will now only pay out on foot of certs from architects and engineers. Will they provide one for a cash in hand job?