Stay and Spend Scheme

The Stay and Spend Scheme begins today, 1 October 2020 and runs until 30 April 2021. This new tax credit can be used against Income Tax or USC liabilities for the years 2020 and 2021.

To qualify for the Stay and Spend credit a minimum spend of €25 is required per transaction. Qualifying expenditure includes holiday accommodation and “eat in” food and non-alcoholic drink from a “registered service provider” only. A list of all registered service providers can be found on Stay and Spend Scheme.

The Stay and Spend Tax Credit is equal to up to 20% of qualifying expenditure incurred. A €625 expenditure limit has been introduced for individuals and €1,250 for jointly assessed spouses and civil partners. The maximum tax credit that can be claimed under this scheme in respect of the 2020 and 2021 year of assessment is either €125 per person or €250 per couple for jointly assessed spouses and civil partners.

To claim the Stay and Spend Tax Credit, you must submit an income tax return and submit a copy of your receipt to Revenue. Tax returns can be submitted via MyAccount for PAYE workers or via ROS for the self-employed. The easiest way to submit a copy of your receipt to Revenue is to use the new Revenue Receipts Tracker App, which is available to download for free from the Apple App Store and the Google Play Store.

The introduction of this scheme should provide a welcome boost to the tourism and hospitality sector.