Stay and spend tax credit

Stay and spend tax credit

Under the new scheme announced in July 2020 stimulus, you are entitled to a tax credit equal to 20% of “qualifying expenditure” incurred from 1 October 2020 to 30 April 2021. This is subject to certain limits and conditions.

Qualifying expenditure includes expenditure on accommodation and food and non-alcoholic drink provided by a qualifying service provider.

You must spend at least €25 on qualifying expenditure in a single transaction. You must submit proof of expenditure with your claim.

You can claim up to €125 which is the maximum tax credit available under the scheme. For jointly assessed couples, the maximum credit available is €250.

Claims for the tax credit must be supported with proof of the qualifying expenditure incurred. The easiest way to submit proof of expenditure is to take a picture of the receipt and submit it through the Revenue Receipts Tracker App. You must indicate that the receipt relates to the scheme. The picture of the receipt must be legible.

If you pay tax through PAYE you can make your claim by submitting the income tax return (Form 12) for the 2020 period in MyAccount.

If you are self-employed you can make your claim by submitting the Form 11 for the 2020 period in ROS.

Both the Income tax return and Form 11 for the 2020 period will be available from 1 January 2021. Your receipts (as proof of expenditure) should be submitted prior to submitting your return.

Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie