2020 has been a strange year with a lot of uncertainty due to the coronavirus pandemic. Our plans have had to be cancelled and rearranged and there has been a major impact on the economy. To help, the government have introduced the stay & spend scheme to encourage people to spend in the hospitality industry. But how does it actually work?
It was launched on the 1st October 2020 and will run until 30th April 2021. Taxpayers can claim the stay & spend credit between this period on spend in restaurants, hotels, B&Bs and more.
The maximum tax credit available under the scheme is €125 per person and maximum tax credit available for those under joint assessment is €250. To qualify for the maximum amount you must spend up to €625 or €1,250 for joint assessment.
What can I claim?
You can claim the stay & spend on holiday accommodation and eat-in food & drink with the minimum spend to qualify €25 per transaction. Providers that qualify should have it clearly displayed on their premises or website but you can also search on Revenue.ie for qualified providers.
Holiday accommodation means a premises registered or listed with Fáilte Ireland and includes:
- Hotels
- B&Bs
- Caravan and camping parks
- Guest houses
- Holiday/youth hostels
- Approved holiday cottages/ apartments.
Food & drink must be served and consumed in a hospitality premises and includes:
- Hotels
- Cafes
- Restaurants
- Licensed premises.
Alcohol is not covered under this scheme and food provided on a take-away basis do not qualify.
How do I claim?
You need to submit a copy of receipts from qualifying providers. The quickest way of doing this is using the new Revenue Receipts Tracker App or through myAccount on Revenue. You simply take a clear picture of the receipt and Revenue Receipts Tracker will save them for you or you can save the physical receipts and make the claim when completing your annual tax return.
Qualifying service providers receipts should show:
- The name of the business
- An itemised breakdown of the services provided so that qualifying and non-qualifying expenditure can be clearly identified.
- The tax reference number (where contained on the receipt).
Where a bill is split between two or more customers, service providers should issue when possible an individual receipt to each customer for the services they have paid for. But remember, the minimum spend per transaction is €25 so if you meet a friend for dinner and it is €40 and split the bill 50/50, neither can claim that back. Also, make sure when you do claim you are only claiming for what you actually paid for.
Another thing to be remember is that this refund only comes out of tax paid, if you don’t pay tax no refund will be received.
Source, Revenue.ie, 2020. https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/stay-and-spend/index.aspx . Cornmarket cannot be held responsible for content contained on external websites.