Planning a little getaway in autumn?
If you’re waiting for the leaves to start turning before you finally clock off for some much-needed rest and relaxation, you’ll enjoy an extra treat on your return.
As part of the Stay and Spend tax credit introduced by the Government to support the hospitality sector, announced last month as part of the Jobs Stimulus Package, you can claim up to €125 per person back in tax credits if you pay for accommodation and dine out locally.
With many Irish hotels and businesses on their knees and most of us in dire need of some time off, it’s a win/win.
Here’s the deal…
The new Stay and Spend tax credit will apply from the 2020 year of assessment. Individuals will be entitled to a tax credit equal to 20% of qualifying expenditure on accommodation, food and non-alcoholic drink incurred from October 1st, 2020 to April 30th, 2021, subject to certain limits and conditions. This can include meals in local restaurants.
How much do I have to spend?
Individual taxpayers can make a claim for the credit if they spend at least €25 on qualifying services with a qualifying provider. You must submit proof of that expenditure with their claim.
If you spend €100 you will qualify for a €20 tax credit, €300 will get you a €60 tax credit and a €625 spend (or greater) will allow you to claim the maximum €125 tax credit.
What the maximum amount I can claim?
The maximum tax credit available to an individual is €125. For a jointly assessed couple, the maximum credit available will be €250 on a spend of €1,250.
How do I claim it?
Make sure you keep all your receipts and booking information if you are booking ahead for October. An Taoiseach, Micheál Martin has mentioned that the tax relief will be administered via an app but it hasn’t been confirmed just yet.
What does a business need to do to benefit from the scheme?
In order to qualify for the scheme, service providers must provide qualifying services, be VAT-registered, hold a current tax clearance certificate, and register with Revenue.