Sunday 25 October 2020

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Cork Independent

Business & Professional

Stay and Spend Scheme offers 20% tax back to all

Wednesday, 7th October, 2020 1:36pm

Well that’s now possible due to the new Stay & Spend Scheme which kicked off last week.

This is designed to help drive sales in the hospitality sector which has been severely affected as a result of Covid-19. Level 3 restrictions will affect the hospitality sector for the next three weeks however.

The scheme will provide a maximum of €125 in income tax credits to tax-payers who spend up to €625 in restaurants, pubs, hotels, B&Bs and other qualifying businesses, from now until spring 2021, including over the Christmas period.

Tax-payers need to upload their receipts for qualifying expenditure to the Revenue Receipts Tracker mobile app, to avail of the tax relief.

The relief can be claimed on accommodation and food, including soft drinks, but not alcohol. There is a minimum spend of €25 per person per time and a maximum spend limit of €625 (VAT inclusive) over the life of scheme which runs until 30 April 2021.

To get tax credits, you just have to submit a receipt by taking a photograph of it using a mobile phone and submitting the photo to Revenue using the mobile app.

The scheme was launched by Minister for Finance, Paschal Donohoe and Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Catherine Martin last Thursday.

Minister Donohoe said: “The hospitality sector has been badly hit as a result of the necessary public health restrictions put in place to suppress the spread of Covid-19 in Ireland. The sector is vital to our economy and the Stay and Spend scheme will help support it in these difficult times.

“When this scheme was designed it was our anticipation then, that our economy would be on the way to full reopening, and there would be full mobility across the country. We know now that's not the case.”

This plan has been developed to allow us to live alongside Covid-19 over the medium term.

In parts of the country which are placed at lower levels of the framework, the Stay & Spend Scheme will help to encourage people to spend in the hospitality sector.

Minister Donohoe continued: “I will be monitoring the scheme, to see how it’s working and if any changes need to be made. We need to keep policies that are working, and change ones that might not be working as planned, but at all times, ensuring they are affordable.

“However, this scheme will run for a long period and I would also like say to restaurants, hotels, pubs, B&Bs and other qualifying businesses that have not yet done so, that now is a good time to register to ensure that they are in a position to benefit from the scheme as circumstances allow.

“Registration is quick and simple through Revenue’s online service. Fáite Ireland is supporting participating businesses and will provide a starter kit and digital toolkit to help promote the scheme to their consumers,” he added.

In order to qualify for participation in the scheme, businesses will need to:

be registered for VAT

have a current tax clearance certificate

be accredited/registered with relevant official bodies as appropriate (Fáilte Ireland and the HSE Environmental Health Service)

register with Revenue to participate

display appropriate signage indicating participation in the scheme

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