staycation tax rebate

Stay and Spend Tax Credit: A Step-by-Step Guide

Introduction

The Stay and Spend Tax Credit Scheme in Ireland offers taxpayers the opportunity to reclaim a portion of their expenses on accommodation, food, and non-alcoholic beverages incurred between October 1, 2020, and April 30, 2021. This guide aims to provide a comprehensive overview of how to effectively claim and maximize this tax credit.

What is the Stay and Spend Tax Credit?

Under the Stay and Spend Tax Credit Scheme, eligible taxpayers can claim a tax credit on qualifying expenditures related to accommodation and dining within Ireland. This initiative was introduced to stimulate domestic tourism and support the hospitality sector.

Eligibility Criteria

To qualify for the Stay and Spend Tax Credit:

  • You must be a taxpayer in Ireland.
  • Each qualifying transaction must be a minimum of €25.
  • Receipts can be submitted for up to a total of €625 per individual or €1,250 for a jointly-assessed married couple.
  • The maximum tax credit available is €125 per person or €250 for a jointly-assessed married couple.

What Expenses Qualify for the Credit?

The following expenditures qualify for the Stay and Spend Tax Credit:

  • Accommodation: This includes stays in hotels, guesthouses, B&Bs, self-catering accommodations, caravan parks, camping parks, and holiday camps registered with Fáilte Ireland.
  • Food and Non-Alcoholic Drinks: Meals and beverages consumed in restaurants, cafes, hotels, or pubs where the total bill per transaction is at least €25.

Exclusions

  • Takeaway food, alcoholic beverages, and drinks served without food do not qualify for the tax credit.

Rates and Maximum Credit

The Stay and Spend Tax Credit is calculated at a standard rate of 20% on qualifying expenditures, up to a maximum credit of €125 per person or €250 for a jointly-assessed married couple. The total qualifying expenditure is capped at €625 per person or €1,250 for a couple.

How to Make a Claim

Claiming the Stay and Spend Tax Credit involves two stages:

Stage 1: Submit Your Receipts

  • Use Revenue’s receipts tracker to record and store details of your qualifying receipts online.
  • Continue adding receipts until you reach the expenditure cap of €625 (individual) or €1,250 (couple).

Stage 2: Make a Claim Online

  • If you are a PAYE taxpayer, submit your claim through your myAccount using the Income tax return (Form 12) for the relevant tax period.
  • Self-employed individuals should use ROS to submit the Form 11 for the corresponding tax period.
  • Ensure all receipts are submitted as proof of expenditure before finalizing your claim.

How Will the Relief Be Given?

The Stay and Spend Tax Credit will offset your income tax liability after other allowances, deductions, or reliefs have been applied. If the credit exceeds your income tax liability, any remaining credit can be used to reduce your Universal Social Charge (USC) liability for that tax year.

Changes and Updates

Stay informed about any updates or changes to the Stay and Spend Tax Credit scheme for the current year, as these may affect eligibility criteria or the maximum credit amount available.

Frequently Asked Questions (FAQ)

How to Calculate the Tax Credit Amount

  • Multiply your qualifying expenditures by 20% to determine your tax credit amount, capped at €125 per person or €250 per couple.

What to Do If Receipts Are Lost

  • Contact the service provider for duplicate receipts or alternative proof of expenditure.

Rectifying Filing Mistakes

  • If errors are identified post-submission, promptly notify Revenue and follow the prescribed amendment procedures.

Conclusion

The Stay and Spend Tax Credit Scheme provides a valuable opportunity for Irish taxpayers to enjoy tax relief while supporting local businesses in the hospitality sector. By following the steps outlined in this guide and staying updated on scheme details, you can effectively leverage this initiative to enhance your travel experiences within Ireland.

For more detailed guidance and resources on the Stay and Spend Tax Credit, visit Revenue’s official website or consult with a tax advisor. Contact us and one of our tax experts will be more than happy to help. Share your insights and experiences with the scheme in the comments below to help others make the most of this beneficial tax credit.

This guide aims to simplify the process of claiming and maximizing the benefits of the Stay and Spend Tax Credit, ensuring clarity and compliance for Irish taxpayers.

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