The Ultimate Guide to the Stay and Spend Tax Credit Scheme

If you’re an Irish taxpayer who enjoyed dining out or a staycation between 1 October 2020 and 30 April 2021, you might be eligible for a 20% rebate on your local hospitality expenses. The government’s Stay and Spend Tax Credit allows you to claim back on what you spent in approved hotels, B&Bs, restaurants, and cafes during this period. At a time when the hospitality sector needed support, this tax credit aimed to reward taxpayers for keeping it local.

Every €100 you spent could earn you €20 back, with a maximum rebate of €125 per person or €250 for couples. However, claiming this rebate isn’t automatic. You need itemized receipts, qualifying expenses, and a few other key details to make it work. If you’re looking to claim what you’re owed, read on for a complete guide to getting the most from the Stay and Spend Tax Credit before the claim window closes.

1. Introduction to the Stay and Spend Tax Credit

The Stay and Spend Tax Credit scheme was launched on October 1, 2020, as a way for taxpayers to support the Irish hospitality sector by dining out or booking accommodation within the Republic of Ireland. With the pandemic impacting travel and tourism, this tax credit provides a practical way for people to support local businesses and get a tax break in return.

Eligible expenses incurred from October 1, 2020, through April 30, 2021, can qualify for the rebate, but certain rules apply. Read on to find out if you qualify, what expenses are covered, and how to submit your claim.

2. Who Can Apply for the Stay and Spend Tax Credit?

2.1 Eligibility Criteria

The Stay and Spend Tax Credit is available to any Irish taxpayer who has incurred qualifying expenses on approved accommodation or dining in the Republic of Ireland.

Eligible applicants include:

• PAYE workers who file annual tax returns
• Self-employed individuals who file taxes through ROS

Whether you’re booking a staycation or dining locally, as long as you’re paying tax in Ireland, you could be eligible for the rebate.

3. Qualifying Expenses for the Stay and Spend Tax Credit

Not all expenses qualify for the Stay and Spend Tax Credit. Here’s a detailed breakdown of the types of purchases that can qualify under the scheme.

3.1 Accommodation

The scheme covers a wide range of approved accommodations registered with Fáilte Ireland, including:

• Hotels
• Guest houses and B&Bs
• Self-catering facilities
• Caravan parks, camping parks, and holiday camps

It’s important to confirm that your accommodation provider is registered with Fáilte Ireland to ensure eligibility. This requirement helps Revenue verify that the spending supports tourism within the Republic of Ireland.

3.2 Food and Non-Alcoholic Drink

Qualifying expenses also include food and non-alcoholic drinks, provided they’re served and consumed at approved establishments:

• Cafés
• Restaurants
• Hotels or licensed venues

However, certain exclusions apply:

• Takeaway food does not qualify.
• Alcoholic drinks or non-alcoholic drinks ordered without food do not qualify.
• The minimum spend per transaction is €25, so ensure each bill meets this threshold.

The aim is to encourage dining out within the country, supporting local businesses impacted by reduced tourism.

4. How Much Can You Claim?

The tax rebate covers 20% of qualifying expenses, up to certain limits:

4.1 Maximum Claim Limits

• Individuals can claim up to €125 on a total expenditure of €625.
• Jointly-assessed couples can claim up to €250 on a maximum expenditure of €1,250.

This limit applies across all eligible transactions, so once you’ve hit the €625 or €1,250 mark in spending, you won’t be able to claim additional rebates under this scheme.

4.2 Calculating Your Rebate

For every €100 spent on eligible dining or accommodation, you can claim €20 in tax credit. However, the rebate is capped, meaning the most you’ll receive is €125 for individuals or €250 for couples.

5. When Can You Claim the Stay and Spend Tax Credit?

The scheme applies to eligible expenses incurred between October 1, 2020, and April 30, 2021. Claims should be filed within four years of the tax year when the expenditure was made, so keep track of the deadlines:

• Expenses between October 1, 2020, and December 31, 2020 must be claimed by December 31, 2024.

Submitting claims on time ensures that you don’t miss out on potential tax savings.

6. How to Claim the Stay and Spend Tax Credit

Claiming this tax credit involves a two-stage process: submitting receipts and filing the actual claim. Here’s how to navigate each stage:

6.1 Stage 1: Submit Your Receipts

• Collect Itemized Receipts: To qualify, receipts must detail each item purchased, clearly showing qualifying expenses.
• Revenue’s Receipts Tracker: Upload your receipts via Revenue’s Receipts Tracker service, available on the myAccount portal. This service stores your receipts until you reach the eligible expenditure cap.

6.2 Stage 2: Make a Claim Online

• PAYE Workers: File your claim through myAccount by submitting Form 12 for 2020.
• Self-Employed: Use Form 11 through ROS to submit claims.

When filing, ensure that you’ve submitted all receipts through the Receipts Tracker to support your claim.

7. Maximizing Your Tax Credit: Important Tips

Making the most of the Stay and Spend Tax Credit requires a bit of planning. Here are some ways to ensure a smooth claim process:

7.1 Track All Eligible Expenses

• Set Aside Receipts: Keep all receipts for eligible accommodation and dining.
• Check Service Providers: Use Revenue’s list of approved providers to confirm that your spending qualifies under the scheme.

7.2 Minimum Spend Per Transaction

• Ensure each transaction is at least €25 to qualify.
• Itemized receipts will help Revenue confirm the qualifying nature of each expense, so make sure these details are clearly shown.

7.3 Split Bills Correctly

• If you share a bill, only claim for the portion you personally paid.
• Request separate receipts from service providers where possible, especially if multiple individuals are claiming on the same bill.

8. How the Stay and Spend Tax Credit Reduces Tax Liability

The Stay and Spend Tax Credit works by offsetting eligible expenses against your income tax liability for the year.

8.1 Offsetting Against Income Tax and USC

• The tax credit is applied to reduce your income tax liability after other deductions and reliefs are accounted for.
• Any excess tax credit (if your income tax liability is lower than the available credit) can be applied to reduce your Universal Social Charge liability for the year.

8.2 Limits on Credit Usage

• If the available tax credit exceeds both your income tax and USC liabilities for the assessment year, you won’t be able to carry forward the unused portion or receive a cash refund.

By using the credit, you can potentially reduce your total tax and USC liabilities to zero, providing meaningful savings on qualifying expenses.

9. Conclusion

The Stay and Spend Tax Credit is a practical way to support the Irish hospitality sector while enjoying tax savings on eligible spending. This scheme is a win-win for taxpayers and businesses alike, making it an excellent opportunity to claim back on your staycations or dining experiences in Ireland.

To take advantage of the scheme:

• Track your eligible expenses and submit itemized receipts. Use Revenues receipt tracker to achieve this.
• File your claim on time to ensure you receive the full rebate.
• Consider using Revenue’s list of approved service providers to confirm that your spending qualifies.

By following these steps, you can make the most of the Stay and Spend Tax Credit, supporting Irish businesses while keeping more money in your pocket.