The plan to claim food and lodging tax credits starts today

A GOVERNMENT SCHEME intended to support the hotel industry that has been so negatively affected by the Covid-19 launches today.

The Stay and Spend scheme will allow taxpayers to claim a maximum of € 125 in tax credits on their expenses in the hotel sector from today until April 30, 2021.

To qualify for the maximum amount, a person must spend up to € 625 (or € 1250 for married couples or civil couples) in qualified restaurants, pubs, hotels, B & Bs and other businesses.

People can claim relief from the cost of lodging and food, including soft drinks, but not including alcohol. But they must also have an income tax or USC liability against which the tax credit can be established.

Taxpayers can, starting today, upload their receipts for qualified expenses through the Revenue Receipts Tracker app to take advantage of the tax break. You will need to take a photo of your receipt and upload it to the app. You can keep sending receipts until you reach the € 625 limit.

According to Income, the credit will be offset against your income tax liability and “will apply after all other allowances, deductions or allowances have been provided to the taxpayer.”

While € 125 (or € 250 for a married couple or civil partners) is the maximum that can be claimed, a 20% refund can be claimed on any expense in a restaurant or hotel as long as it costs at least € 25.

The plan will only apply to hospitality companies that have registered with the plan and the government is encouraging those that have not yet registered to do so. You can find a list of providers registered under the scheme here.

The government emphasized that it expects this scheme to support companies affected by the Covid-19 pandemic, but knew that some areas are currently facing stricter restrictions to limit the spread of the disease.

Finance Minister Paschal Donohoe said: “When this plan was designed, we were expecting then that our economy would be on its way to fully reopen and that there would be full mobility across the country. We now know that that is not the case with some parts of our country in Level 3 of the government plan to live with Covid-19. “

However, Donohoe says he hopes this scheme can help support the hospitality industry “in these tough times.”

He added: “I will be monitoring the scheme, to see how it is working and if it is necessary to make any changes. We need to keep the policies that are working and change the ones that may not be working as planned, but at all times, making sure they are affordable.

“However, this scheme will work for a long time and I would also like to tell qualified restaurants, hotels, pubs, B & Bs and other businesses that have not yet done so, that now is a good time to register to make sure a position to benefit from the plan as circumstances allow. Registration is quick and easy through Revenue’s online service. “

Members of the opposition have criticized the plan because it applies only to taxpayers, so people like retirees and the unemployed cannot take advantage of it.

The Stay and Spend plan is the subject of this week’s The Explainer podcast, so keep an eye on your podcast feed when it goes live tomorrow.