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Is the government going to pay people to go on vacation?
No, it’s not. However, it is offering to give people a tax credit of more than € 100 if they spend money at restaurants, hotels and cafes in the coming months, provided certain criteria are met. It’s called the Stay and Spending Plan.
Stay and spend? What does that mean?
Well, the government wants to encourage people to stay home and spend money in the hotel sector in the fall, winter and spring, and promises to return 20% of what people spend on restaurants, pubs, hotels and other businesses between October. and April.
Are pubs included?
No, the scheme only covers food and non-alcoholic beverages.
Is there a limit to the amount I can claim?
The amount that a person will receive in the form of tax credits has been limited to € 125, which means that the scheme ceases to have a benefit for the consumer once € 625 has been spent. You will also have to spend at least € 25 for a transaction to count towards the total.
Will that tax relief double for a couple?
Will. A qualified tax-paying couple can get € 250 tax credits provided they spend € 1,250.
When does the scheme start?
It goes into effect on October 1, but lodging and food companies can register now with Revenue to make sure they are included.
Why do you need to register?
In order for a business to qualify for the scheme, the tax collector will need to know that it is part of it. They will need to be VAT registered, have a current tax settlement certificate and be registered with Fáilte Ireland or other relevant tourism body, as well as the HSE Environmental Health Service. They must also display a sign indicating that they participate in the scheme.
Wouldn’t it have made more sense to start this during the summer when people travel within Ireland?
He probably would have, at least from a tourist’s perspective. But the plan is meant to support tourism businesses rather than tourists, as they need help. Reservations were thought to be fine in July and August, as Irish people confined to the island due to travel restrictions had no choice but to spend their vacation money at home. less inclined to book trips. That is why the focus is on the months between October and April.
How was the summer for the sector?
It’s probably too early to tell what August was like, but according to Central Bank figures, July spending on accommodation and restaurants was strong. The bank’s latest credit and debit card statistics show that total card spending, including ATM transactions, was about € 5.8 billion in July, 6% more than the previous month, but 5% less. That the last year.
Within this, the accommodation subsector recorded monthly growth rates of 160 percent. As the third phase of the restrictions eased in late June, with restaurants and some bars reopening, spending on the social sector increased 35 percent in July, compared to the previous month.
How does the consumer get their money from the tax collector?
Taxpayers who wish to benefit from the scheme can register by downloading an application, Revenue Receipts Tracker, and providing their name and PPS number. They must also have an income tax or USC liability against which the tax credit can be established. Qualifying individuals without a smartphone will also be able to file claims online or by mail.
What happens if I don’t pay income tax?
If you do not pay income tax because you are on welfare or receiving a pension or if you earn less than the income tax threshold, you cannot benefit from the plan.
Do I have to be on vacation or can I claim the tax credit by eating at a local restaurant?
You don’t have to be on vacation and once the restaurant participates in the program and you spend more than € 25, it qualifies.
How will Income know how much I have spent?
All tax credit applications must be verified with receipts.
Do I have to keep the receipts?
No, as we said, there is an app for that. While you may already be familiar with taking pictures of your food in restaurants, now you will have to get used to taking some of your receipts. If you want to get the tax credit, download the app and register your name and PPS number. Then when you go out to eat or in a hotel sleeping, be sure to get your receipts and take a photo of them that shows how much you have spent and where you spent. When you reach the € 625 limit, the application will notify you that you are done.
Do you get my money back immediately?
You will have to wait a bit for that. The tax credit will not apply until the tax year after you have spent your money. If you hit the € 625 threshold between October and December, you will get the tax credit next year. If you stop spending until next year, you won’t get the tax break until 2022.
Will the scheme work?
It is certainly better than nothing, but it is highly questionable whether or not it will be enough to push back the many Irish companies claiming to be on the brink.
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