How it works

For works costing between €4,405 and €30,000 (before VAT), the added VAT is refunded to you over two years. As VAT is charged at 13.5pc for building works, the benefit is between €595 €4,050. If the work costs more than €30,000, you won’t get any extra VAT relief.

■ You must be a taxpayer to get tax relief. This may exclude pensioners, even those who pay USC if their income isn’t sufficient to put them in the tax net. The benefit cannot be claimed by someone other than the home owner (e.g. an adult child).

■ Landlords can apply.

■ You must be up to date with your Property Tax payments.

■ The spend must be exclusively on repair, renovation or improvements. You cannot get VAT back on soft furnishings, white goods etc, but painting and decorating is allowed.

■ Professionals such as architects, solicitors, surveyors, etc, who charge VAT at 23pc do not qualify under the scheme, so their fees must be paid in full.

What Should You Do?

■ Check your contractor(s) are registered for HRI. You both apply online with Revenue (www.revenue.ie) in advance of the work. The website has a list of registered builders.

■ Multiple contractors can be used but the entire job must be within cost limits (see the example).

■ Get several quotes for the work and personal recommendations are always valuable. Make sure that you have a time-scale, and payment schedule in writing from contractors and that their insurance certificate is valid.

Grant Aided Work

■ If you are also applying for an SEAI grant (eg, for insulation or a boiler), three times the grant amount is deducted from the HRI application before you can claim.