4. Information for Contractors on HRI

The Home Renovation Incentive is designed to give tax compliant Contractors an advantage over unregistered Contractors and to provide employment and business opportunities in the home renovation sector.

A HRI qualifying Contractor is one who is registered for ROS, VAT and RCT as well as being tax compliant. For RCT Subcontractors, this means a zero or 20% RCT Rate. For RCT Principals, it means being tax compliant.

Contractors, who have been out of the system, can avail of the opportunities that HRI presents by ensuring their VAT and RCT registrations are active and their tax affairs are in order. If you have been working on a casual basis in the sector, now is the time to regularise your tax affairs.

Contractor's Checklist

Contractor's Checklist
No
Registrations
(once-off)
Are you registered for VAT? Register now
at www.revenue.ie
Are you registered for RCT?
Are you registered for VAT?
RCT Rate Is your RCT Rate 35% Contact your local Revenue office now to bring
your tax affairs up to date
Before work starts Have you entered the works to HRI online? Enter the details before the works starts
Have you advised the Homeowner or Landlord to check
the works on HRI online?
Advise the Homeowner or Landlord now
As work progresses Have you entered the payments to HRI online? Enter the details as payments are received
Have you advised the Homeowner or Landlord to check
the payments on HRI online?
Advise the Homeowner or Landlord now

4.1. I am a Contractor, I am not registered for VAT, what should I do?

Information on registering for VAT is available on the Revenue website at VAT Registration. If you are not already registered, you will also have to register for ROS (Revenue's Online Service) as VAT registered Contractors are obliged to file their VAT Returns electronically.

4.2. I am a Contractor, I am not registered for VAT as my turnover is below the VAT registration limit. If I register for VAT for HRI will I have to make VAT Returns on all business activity or just HRI?

You will have to make VAT Returns on all your business activity. However you will also be able to claim back VAT paid during the course of your business. Further information on VAT is available at Guide to VAT.

4.2.1. I am a Northern Ireland Contractor, not registered for VAT in the State, what should I do?

Northern Ireland Contractors, carrying out works in the State, must be registered and account for VAT in the State to qualify to carry out works under the HRI. The VAT Turnover Threshold does not apply to non-resident Contractors carrying out works in the State. To qualify to carry out works under the HRI, a non-resident Contractor must register for VAT and RCT (see questions 4.1, 4.2 above and 4.5 below).

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4.3. I am a Contractor, I am not registered for ROS, what should I do?

You can apply online now at Register for ROS to register for ROS (Revenue’s Online Service). As the ROS Registration process takes up to 10 days, Contractors are advised to register as soon as possible to enable them use the electronic HRI system which operates through ROS.

4.4. I am a Contractor, I am not registered with Revenue, what should I do?

You can find information on running a business as well as Registering for Tax at Registering for Tax.

4.5. I am a Contractor, I am registered for VAT but not for RCT, what should I do?

You can apply through Revenue's ROS eRegistration Service to register for RCT as a Subcontractor. Information on eRegistration is available at eRegistration Service. Once you are registered as a Subcontractor, you can request a Notification of Determination of your RCT rate through ROS.

4.6. I am a Contractor, I am registered for RCT as a Principal, what should I do?

You should ensure that your tax affairs are kept up to date.

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4.7. I am a Contractor, I am registered for VAT and RCT, what should I do?

If you are registered as a Subcontractor, you should ensure that you have an RCT Rate of zero or 20% RCT rate. You can request a Notification of Determination of your RCT rate through ROS.

4.7.1. My RCT Rate is 35%, what should I do?

If you have a 35% RCT Rate, contact your local Revenue office to agree a plan to bring your tax affairs up to date. Once a plan is in place, your RCT Rate will be reduced to 20%, which means you’ll qualify for HRI.

4.8 Where can I get further information or assistance?

Information is available in the pdfHome Renovation Incentive Guide for Contractors (PDF, 452KB). The FAQs will be updated on an ongoing basis. If you need further information in the meantime, you can find contact details for your local Revenue office at Contact Locator.

March 2017

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