Initial Reaction: Budget 2014 - New home renovation tax incentive scheme
Tuesday, October 15, 2013
15 October 2013: Onlinetradesmen.ie provided initial reaction to the Irish governments Home Renovation tax incentive scheme announced in today’s budget.
" On the face of it we would tentatively welcome the Home Renovation scheme initiative" commented Ted Laverty, Managing Director of Onlinetradesmen.ie, " However, as with all of these things the details will reveal how practical it is. We have seen various incentives, such as the retro-fit scheme over the years, which were moderately successful. To provide the required support to the trade and construction sector, this scheme must make it easy for property owners to claim the 13.5% rebate which will then fuel the number of home improvements being carried out. A convoluted scheme that is not easily to claim will not achieve this."
" On the downside, the lower limit of €5,000 for a home improvement project to qualify for the scheme is very restrictive. From over 24,000 home improvement projects submitted by Irish property on the Onlinetradesmen.ie service in 2013, the average project value is just under €3,000. Projects range from new home builds down to small plumbing jobs. So many of these will not be applicable for this rebate. Indeed an average bathroom refit project, which is always a popular project, costs in the region of €3,500. This will not qualify for the scheme. For this reason the scheme would appear not to provide much benefit to the independent tradesmen who carry out smaller projects" commented Laverty.
Onlinetradesmen.ie does welcome the measures to look at stamping out the "Shadow Economy" within the construction sector. "We have been campaigning against the black economy for a number of years. This new scheme indicates that property owners can only claim a rebate if they use a VAT registered tradesmen, which is good news" commented Laverty.
Also of benefit from Budget 2014 is the planned construction of 4,500 new homes in Dublin by Nama. This will benefit tradesmen across all skillsets.
Further reaction will be provided by the Onlinetradesmen.com service as the details of the Home improvement tax incentive scheme is released.