Businesses must act now to capitalise on Stay and Spend Scheme from 1 October

Sep 03, 2020

Chartered Accountants Ireland is reminding businesses in the hospitality sector who intend to participate in the Stay and Spend tax credit scheme to check that their tax affairs are in order and register with Revenue as soon as possible ahead of the commencement of the scheme on 1 October. 

Designed to stimulate activity in the domestic hospitality industry, the Stay and Spend Scheme was a key element of the Government’s July Stimulus Package. This new income tax credit gives taxpayers a rebate of up to €125 for a single person or €250 for a married couple when the taxpayer spends over €625 (€1,250 for married couples) on accommodation, food and non-alcoholic drinks between 1st October 2020 and April 2021.  

To participate in the scheme, a business must provide holiday accommodation or “sit-in” food and non-alcoholic drink, be registered for Value Added Tax and hold tax clearance before it can register with Revenue for the scheme. Some businesses may have to get tax clearance in place or register for VAT to participate in the scheme while accommodation provides must be registered or listed with Fáilte Ireland. 

Commenting, Norah Collender, Professional Tax Leader, Chartered Accountants Ireland said

”We advocated for such a scheme and while only kicking off from 1 October, Stay and Spend is a crucial opportunity for the hospitality industry to drive footfall and capitalise on domestic demand around events like mid-term break right into the festive season and beyond.

“We have seen considerable praise for the UK government’s Eat Out to Help Out discount which ended this week, with calls for its extension. It’s our hope that the Irish scheme will similarly help to deliver some relief to a severely affected hospitality sector.

“It’s critical that businesses avoid any unnecessary delays in accessing this support. To hit the ground running from October 1, we recommend that they move now to ensure their tax affairs are in order and register with Revenue as soon as possible.”

Once registered with Revenue, the business will be given marketing and promotional material to display in their premises and online to notify customers that it is registered with Revenue. Revenue will also display a list of registered businesses on its website.  Prospective customers will be able to filter this list and search by service type, premises type and county and they can also search a map to find participating businesses.