5. HRI online - What Homeowners, Landlords and Contractors should do
Works and payments in respect of Landlord's rental properties can now be entered on HRI online.
The HRI is intended as a support for Homeownersor Landlords who engage only tax compliant Contractors to carry out qualifying work. They need to satisfy themselves that the Contractor is tax compliant and that the Contractor will tell Revenue online about the work and payments. Revenue also needs to be sure that the work was done and payments were made before giving the applicant the HRI tax credit.
To achieve this objective, a number of checks have been built in. The scheme operates through Revenue HRI online.
Contractors can login through HRI online in ROS.
The HRI online icon in ROS will only be available to Contractors registered for both VAT and RCT.
The HRI Input Works and HRI Input Payments options will only be available to tax compliant Contractors.
For RCT Subcontractors, this means a zero or 20% RCT Rate. For RCT Principals, it means being tax compliant.
The following are the steps and checks involved
Before work starts
- The Homeowneror Landlord should tell the Contractor that they will be applying for a tax credit under the HRI scheme for the work done.
- The Homeowner or Landlord should ask the Contractor to confirm that the Contractor is participating in the scheme and will enter the details of the work on HRI online.
- The Homeowner or Landlord should give the Contractor the Property ID - NOT the PPSN or Local Property Tax PIN as these are important personal information.
- The Contractor should enter the work details to HRI online.
- It's important that the Homeowner or Landlord logs in to HRI online to check that the work details have been entered. They won't be able to claim the HRI tax credit if the details aren't on HRI online.
After work starts and as payments are made
- The Contractor should enter payment details to HRI online.
- It's important that the Homeowner or Landlord logs in to HRI online again to check that the payment details have been entered. They won’t be able to claim the HRI tax credit if the details aren't on HRI online.
The year after the work is carried out and paid for
- The Homeowner or Landlord should login to HRI online to claim the HRI tax credit. Their Local Property Tax and Household Charge must be up to date at the time of the claim.
Homeowners or Landlords won't qualify for the HRI tax credit if the Contractor is not a HRI qualifying Contractor (see 1.8. under General Information on the Home Renovation Incentive (HRI) Scheme, 2.1. and 2.2 under Information for Homeowners or Landlords on HRI ). If the Contractor is not a HRI qualifying Contractor, he or she will not be able to enter the details to HRI online. So it's really important to check that the works details are on HRI online before work starts.
Homeowners or Landlords won't be able to claim the HRI tax credit if the Contractor hasn’t entered the works and payments details to HRI online.
While tax compliant Contractors will have no problem with entering details to HRI online, Homeowners or Landlords are in control of the process. If they are being fobbed off and told by the Contractor that he or she will enter the details to HRI online when the job is done, they should choose a different Contractor (see 1.8. under General Information on the Home Renovation Incentive (HRI) Scheme, 2.1. and 2.2 under Information for Homeowners or Landlords on HRI ).
Before any work starts and before a Homeowner or Landlord pays over any money, they should check that the work details have been entered to HRI online by the Contractor.
If they don’t see the work details on HRI online, they shouldn’t engage the Contractor.
If a Homeowner or Landlord has any doubt that the Contractor will not enter the payment details to HRI online, they may wish to consider holding some portion of the payment until they see the portion paid on HRI online. This is a matter between themselves and the Contractor.
If a Homeowner or Landlord is having qualifying work done but isn’t spending over €4,405 (before VAT) on the property, it’s still worth choosing a HRI qualifying Contractor and having the work details entered on HRI online. The applicant may have more qualifying work carried out on the property between then and 31 December 2018 and the total expenditure on the property could reach €4,405 (before VAT). It will be very difficult for them to go back to a Contractor, to get him or her to enter details to HRI online, for a job from a year or more ago.
In addition, if a Homeowner or Landlord is using a HRI qualifying Contractor, they can be sure that the Contractor is tax compliant.