Budget home improvement tax back

martinn123

This might be what you are thinking about

It's a Draft guideline to Local Auth's issued by Min. Hogan in Jan 13, on Development Contributions

http://www.environ.ie/en/Publications/DevelopmentandHousing/Planning/FileDownLoad,32162,en.pdf

ted1

martinn123 wrote: »

This might be what you are thinking about

It's a Draft guideline to Local Auth's issued by Min. Hogan in Jan 13, on Development Contributions

http://www.environ.ie/en/Publications/DevelopmentandHousing/Planning/FileDownLoad,32162,en.pdf

Didn't see anything about extensions there. Once again extensions costing under 30k generally don't require planning

martinn123

ted1 wrote: »

. Once again extensions costing under 30k generally don't require planning

Yes, provided that are at the ''Rear'' of the home, are less than 40SqM, including any extensions, since the house was built, there is 25 SqM of Garden space remaining, and a few other conditions.

ted1 wrote:

Didn't see anything about extensions there

No, extensions are not specifically mentioned, however the Guidelines suggest LA's be more adventurous when it comes to collecting Fees, perhaps our friends in Galway, are first out of the blocks.

Ray Palmer

crusher000 wrote: »

I have checked sources on internet and cannot find anything. Was on Connacht Tribune two weeks ago from what i remember and can't find article on the web have hard copy at home will have to read through it.

But jaysus if I dreamt this up I should be in Government.:)

I think you mixed some facts up. The council do charge for development works but not normal extensions. It may be a proposal somebody suggested but again doesn't mean it will happen.

Considering the government made me pay massive stamp duty and now charge property tax they already are getting double payments for services I will be really annoyed if they try a third time. :mad:

feelo

Sorry I'm a bit confused about the amount you can claim tax back on. The scheme allows you to clain back on jobs costing 5k - 30k. I recently got a quote for work for 4,900 euro. If I ask the builder to quote me for 5k does that mean that I can now avail of the scheme or can you just claim on 5k or more of the total sum that you spend? So for example if I had to spend 7k would I just be able to claim for the VAT back on 2k.

ted1

feelo wrote: »

Sorry I'm a bit confused about the amount you can claim tax back on. The scheme allows you to clain back on jobs costing 5k - 30k. I recently got a quote for work for 4,900 euro. If I ask the builder to quote me for 5k does that mean that I can now avail of the scheme or can you just claim on 5k or more of the total sum that you spend? So for example if I had to spend 7k would I just be able to claim for the VAT back on 2k.

Is the quote from a VAT registered contractor?

martinn123

feelo wrote: »

Sorry I'm a bit confused about the amount you can claim tax back on. The scheme allows you to clain back on jobs costing 5k - 30k. I recently got a quote for work for 4,900 euro. If I ask the builder to quote me for 5k does that mean that I can now avail of the scheme or can you just claim on 5k or more of the total sum that you spend? So for example if I had to spend 7k would I just be able to claim for the VAT back on 2k.

Minimum spend is 5000 PLUS Vat, i.e 5675.00

on that amount you would claim back the 675.00

pwurple

Does anyone have a link to the details of the scheme? Is it just for 2014? We were thinking of building a garage extension in 2015, might try to pull it forward if it fits into scheme.

feelo

martinn123 wrote: »

Minimum spend is 5000 PLUS Vat, i.e 5675.00

Right, so if I spen 5,000 I can claim back 675? if I spend 4,900, I can't?

Gmol

feelo wrote: »

martinn123 wrote: »

Minimum spend is 5000 PLUS Vat, i.e 5675.00

Right, so if I spen 5,000 I can claim back 675? if I spend 4,900, I can't?

Yes if you are quote 5000 + Vat

wazzoraybelle

Is the 30k the maximum allowable budget for the project, or the maximum figure for which relief is allowable?

martinn123

wazzoraybelle wrote: »

Is the 30k the maximum allowable budget for the project, or the maximum figure for which relief is allowable?

30k Plus VAT, 34050, is the maximum for which you can claim the Tax back,4050. the project can be for a greater amount.

Ray Palmer

wazzoraybelle wrote: »

Is the 30k the maximum allowable budget for the project, or the maximum figure for which relief is allowable?

The way it normally works with such allowances the project can cost more but the limit on claim back will be the most you can claim for. It actually active from today so there should be some documentation floating about now.

ITDept

Ray Palmer wrote: »

The way it normally works with such allowances the project can cost more but the limit on claim back will be the most you can claim for. It actually active from today so there should be some documentation floating about now.

That's correct. Here's the link:
http://www.revenue.ie/en/tax/it/reliefs/home-renovation-incentive.html

martinn123

pwurple wrote: »

Does anyone have a link to the details of the scheme? Is it just for 2014? We were thinking of building a garage extension in 2015, might try to pull it forward if it fits into scheme.

http://www.revenue.ie/en/tax/it/reliefs/home-renovation-incentive.html

Note, this was published on the Revenue Web-site, BEFORE they changed the start date, to today, so don't be confused by a reference to Jan 1st.

jos28

I am getting prices for a kitchen and new windows at the moment and was obviously thinking of holding off til January because of the scheme. I had a phone call this morning from one of the window suppliers that quoted me. According to them the scheme has been brought forward and if we get the work done this year we can claim back
I suspect they are just chancing their arm and hoping to get an order from me. I imagine once I pay the deposit there will be 'a delay' and I won't get the windows till January :rolleyes:.
Am I correct in presuming that the start date is still January 2014 ?

martinn123

The start date for work, has been changed to today

The Tax relief will be granted for 2014/15

jos28

Thanks Martinn,
That's great news. I must learn to be less cynical

NIMAN

Bit of an odd credit this.

I am thinking of doing a total bathroom revamp and was thinking of spending that kinda money (5k).

Thing is, I think if I was to get it done legit it would still cost more, and what I would save in tax over 2 years I would probably save immediately if I got a guy to do it on the QT.

So not sure if its as tempting at the lower end of the market?

martinn123

NIMAN wrote: »

Bit of an odd credit this.

I am thinking of doing a total bathroom revamp and was thinking of spending that kinda money (5k).

Thing is, I think if I was to get it done legit it would still cost more, and what I would save in tax over 2 years I would probably save immediately if I got a guy to do it on the QT.

So not sure if its as tempting at the lower end of the market?

Actually the opposite should be the case.

say your bathroom refurb, is costed at

Bathroom Suite, materials etc.........3000
Wages........................................1500
Profit............................................500

So your registered Guy can buy the materials for 3K plus 23% vat, but he can claim back the VAT

Your ''off the books'' Guy will buy the materials at 3K plus 23% = 3690
but he can't claim back the 690.

So he will either take a few short-cuts on materials, of course the Dole is subsidising his wages cost.

You have no come-back if something goes wrong.

Pay the 5K plus 13.5%, offset the 13.5% against your Taxes, and use a registered Contractor
p.s I am biased, as I am Registered for VAT, etc.

Ray Palmer

martinn123 wrote: »

Actually the opposite should be the case.

say your bathroom refurb, is costed at

Bathroom Suite, materials etc.........3000
Wages........................................1500
Profit............................................500

So your registered Guy can buy the materials for 3K plus 23% vat, but he can claim back the VAT

Your ''off the books'' Guy will buy the materials at 3K plus 23% = 3690
but he can't claim back the 690.

So he will either take a few short-cuts on materials, of course the Dole is subsidising his wages cost.

You have no come-back if something goes wrong.

Pay the 5K plus 13.5%, offset the 13.5% against your Taxes, and use a registered Contractor
p.s I am biased, as I am Registered for VAT, etc.

I think you might have that wrong. If the tradesman can claim the tax back he is just putting it back onto the bill to the customer and then passing it on to the tax man.

I know for myself I can claim vat back on company expenses. That doesn't mean that if I bought something for a client I don't charge them the vat.

You are effectively saying customers don't pay vat on materials which doesn't sound right at all.

martinn123

Ray Palmer wrote: »

I think you might have that wrong. If the tradesman can claim the tax back he is just putting it back onto the bill to the customer and then passing it on to the tax man.

I know for myself I can claim vat back on company expenses. That doesn't mean that if I bought something for a client I don't charge them the vat.

You are effectively saying customers don't pay vat on materials which doesn't sound right at all.

Well if it worked that way, the House-holder would be paying VAT twice.

I can assure you, this is how it actually works, VAT is paid at the end of the line, everyone else off-sets it

Idbatterim

it of an odd credit this.

I am thinking of doing a total bathroom revamp and was thinking of spending that kinda money (5k).

Thing is, I think if I was to get it done legit it would still cost more, and what I would save in tax over 2 years I would probably save immediately if I got a guy to do it on the QT.

So not sure if its as tempting at the lower end of the market?

Yeah that is the thing, it will still be cheaper getting it done cash in hand, the government car only do so much with this situation...

Ray Palmer

martinn123 wrote: »

Well if it worked that way, the House-holder would be paying VAT twice.

I can assure you, this is how it actually works, VAT is paid at the end of the line, everyone else off-sets it

No they would pay vat on labour and vat on materials. Your way sees them pay no vat on materials. Are you charging 13.5% on the entire invoice?

martinn123

Ray Palmer wrote: »

No they would pay vat on labour and vat on materials. Your way sees them pay no vat on materials. Are you charging 13.5% on the entire invoice?

Yes, it's called supply and fit.
Materials, ( Ex Vat) + Labour,+ Profit, = 5000 Plus 13.5%

That's the market this Tax Relief is aimed at, and why the Refund is pitched at 13.5%,

You are mixing this up with Supply Only, i.e No Labour =23%
or
The Customer supplies the Materials = Labour only = 23%

ted1

Ray Palmer wrote: »

No they would pay vat on labour and vat on materials. Your way sees them pay no vat on materials. Are you charging 13.5% on the entire invoice?

The 2/3 rule comes into play.
If it's mixed parts+labour and the parts account for 2/3 or higher then VAT is applied at the higher rate, the reverse is also true