What is ‘stay and spend scheme’? Everything you need to know about the new scheme

Taoiseach Micheal Martin told last day that hospitality sector was the worst hit when Covid-19 affected all sectors of the country. Following this, the government yesterday had announced a new scheme called Stay and Spend to help the hospitality sector in Ireland.

Under the new scheme, income tax credits will be given to taxpayers who spend money on restaurants, pubs, hotels, B&B and other businesses.

Finance Minister Paschal Donohue had told that the hospitality sector is very important to the Irish economy.

The scheme will run from October 1 to April 30 and will help boost sales in the hospitality sector, Taoiseach said yesterday.

‘Stay and Spend Scheme’ in detail

The Stay & Spend scheme is a government tax scheme aimed at consumers to increase sales in the hospitality sector, which has been adversely affected as a result of Covid-19.

The purpose of the new plan is to consider and protect the challenges of restaurant owners, hoteliers, bar owners and cafe owners.

The tax credit would be of great help to the hospitality sector during the autumn and winter months and would encourage people to camping and eating out.

The plan would offer a maximum of €125 in income tax credits to taxpayers who spend up to €625 on restaurants, pubs, hotels, B&BS and other eligible businesses from the fall of 2020 to the spring of 2021, including the Christmas time frame.

Customers can spend on bills and get back up to 20% of their bill in tax credits. Under the scheme, a couple can claim up to €250 back.

The advantage is that to make use of the scheme you don’t need to go on a ‘staycation’ and can claim for expenses you spent in your local area if they meet the requirements.

The scheme will come into effect from the beginning of next month, but residents and food businesses can now register with Revenue to participate.

The government says taxpayers can claim lodging, food, and non-alcoholic beverages. The minimum cost per transaction is 25.

For claiming accommodation that requires is accommodation registered with Fáilte Ireland, including, hotels, guest houses, B&BS, self-catering, caravan parks, camping parks and holiday camps.

You cannot claim relief for takeaway food, alcoholic beverages, non – food drinks or less than €25.

If you want to claim for accommodation and expenses you must have receipts to prove the claim. The easiest way to send your receipts is to use the Revenue Receipts Tracker mobile app.

To submit details through the app, follow these steps:

  1. The first time you log in, you will be asked if you want to sync any receipts you record onto the app to Revenue storage (if you do, you will not have to keep paper copies)
  2. To record an expense, select ‘Stay and Spend’ from the list of categories
  3. Choose the type of qualifying service – either ‘accommodation’, ‘accommodation and food’ or ‘food’
  4. Next enter the following details:

Name of the business

Date of the expense

Total of bill

Alcohol amount (if applicable)

5. Then click on ‘add receipt’ and upload a copy of the receipt to the app.

● If you pay tax through PAYE, you can make your claim by submitting the Income tax return (Form 12) for the 2020 period in myAccount.

● If you are self-employed you can make your claim by submitting the Form 11 for the 2020 period in ROS.

● Both Form 11 and Form 12 for the 2020 period will be available from 1 January 2021.

● You should submit your receipts (as proof of expenditure) before you submit your return.

The tax credit will reduce the amount of income tax that you have to pay and the credit is taken away after all other allowances, deductions or reliefs have been given to you.

If the tax credit is higher than your income tax liability in the year of assessment, any excess credit can be taken away from the USC you have to pay in that same year.

The credit will be used to reduce the income tax liability and the USC for the year of assessment to zero.

In situations where the tax credit available is greater than the total income tax and USC liabilities in the year of assessment, you would not be eligible to make full use of the credit given to you.