Govt scheme:20% off hotels, restaurants. October to April 2021

Muahahaha · 23-07-2020 8:08pm #1

Right this is a bit of a convoluted scheme by the government and it wont apply to everyone, only those in employment it seems so pensioners, unemployed, and carers are excluded. It takes the form of a tax credit of 20% of your spend on hotels and restaurants within Ireland between October and April 2021. You take a photo and upload your receipts to an app and you later get a credit against the tax you are paying.

Minimum spend is 25 euro and the maximum is 625 which would give you a rebate of 125. Couples can double their saving by spending up to 1,250 together for a rebate of 250. Now obviously this is a reduction on your taxes so there wont be a physical cheque for 125/250 in the post so nobody is going to be doing cartwheels here. However for people who would normally spend 625 on restaurants/hotels over the 6 month winter period then the 125 tax credit is better in your pocket than the governments.

One good use of it I could see is a family who are planning on a 4 or 5 day winter stay in Centreparks anyway can now claim back 20% of the cost upto 1,250 giving them 250 back. Another one is people who eat out in restaurants once a week anyway, a 24 euro weekly spend would get them to the 625 maximum in 6 months.

Government has also yet to define what a restaurant is. McDonalds call themselves a restaurant plus they legitimately offer table service. Lots of people order from restaurants via Deliveroo, that should be included but its not clear so far. Unsure as yet if cafes are included. If they are then someone spending 3 euro a day on coffee going to work five days a week will pay 390 euro over 26 weeks. A 20% credit gives them 78 euro back. It hasnt been mentioned if Airbnbs will be included nor costs of leisure activities like spas or gyms. Were they to be included it could bring annual gym memberships into play.

Also sounds like it could be open to abuse. Two people could have an 80 euro meal, they go halves but both take a photo of the receipt and claim 20% off the full 80. Maybe the software will spot matching receipts but if it doesnt then friends could be sharing receipts to get up to the full 625 maximum limit. Or maybe the app will require access to your location to check if you were physically there.

Anyway like i said no one is going to be doing cartwheels about this. But if you're likely to be spending on restaurants and hotels anyway then its better than a kick in the hole

odyssey06 · 23-07-2020 8:16pm

I may have misread but I thought the minimum spend of 25e applies per receipt.

dhaughton99 · 23-07-2020 8:18pm

Sure, don’t you know that the prices will go up 20% once things start getting back open.

odyssey06 · 23-07-2020 8:25pm

At a guess would it apply to any receipts which was charged at the hospitality VAT rate of 13.5% ?

Fann Linn · 23-07-2020 8:37pm

I hope Revenue updates their App so that we can upload the receipts. I managed to upload 1 med expense in early Jan and since then it's been back to the auld pen and paper as their app is fcuked.

Muahahaha · 23-07-2020 9:13pm

odyssey06 wrote: »

I may have misread but I thought the minimum spend of 25e applies per receipt.

it might be, things seem to be up in the air about the detail. I know alcohol is excluded anyway.

I think it will be handy for people who were going to be staying in hotels over the winter anyway. Im guessing some people are moving their weddings to winter time so guests can avail of the rebate if staying in hotels anyway. Lots of people take a couple of nights in a hotel in Galway or Dublin to visit the Christmas markets and do some shopping. And as mentioned Centreparks a good spot for kids in the winter with the indoor heated pool

Personally I think they would have been better off to just give everyone vouchers to use to discount your bill in hotels and restaurants. Giving a tax credit doesnt really feel like you're getting anything whereas with a discount voucher if people have it in hand they'll likely use it.

jimmycrackcorm · 23-07-2020 9:26pm

Muahahaha wrote: »

Personally I think they would have been better off to just give everyone vouchers to use to discount your bill in hotels and restaurants. Giving a tax credit doesnt really feel like you're getting anything whereas with a discount voucher if people have it in hand they'll likely use it.

Prices would just go up with businesses knowing people will have vouchers. This way they can't as it isn't obvious, but it still encourages people to go spend knowing that they get something back later.

odyssey06 · 23-07-2020 9:28pm

jimmycrackcorm wrote: »

Prices would just go up with businesses knowing people will have vouchers. This way they can't as it isn't obvious, but it still encourages people to go spend knowing that they get something back later.

With a once off or limited voucher I think more the opposite... they would be chasing those euros.

Wesser · 23-07-2020 9:32pm

At last.... something to help whose who work......

PaybackPayroll · 23-07-2020 9:35pm

People my be able to use towards offsetting their Temporary Wage Subsidy Scheme tax credits deduction.

For me, I don't like the sound of uploading receipts - if that is the way they're going to implement this.

Muahahaha · 23-07-2020 9:40pm

jimmycrackcorm wrote: »

Prices would just go up with businesses knowing people will have vouchers. This way they can't as it isn't obvious, but it still encourages people to go spend knowing that they get something back later.

Its hard to know, hotels and restaurants would still be competing against each other to get people in the door and engaging in price gouging because people have vouchers isnt a great way to persuade people to spend it in their business. If they were all to jack up their prices by 20% en masse many would just not bother and it would hit their business as those who do spend the vouchers are less likely to go back again when prices are 20% higher anyway with no voucher to off set against it.

I just think running it by vouchers would have made the scheme more successful and been better at encouraging people to go out and spend. You would also get your discount on the night so an immediate saving there and then. The whole spend now get a tax credit at some stage in the future isnt massively attractive. Fine if you were planning a trip away regardless but it wouldnt encourage me into making a trip specifically. Even though both outcomes are the same there is better consumer psychology on doing vouchers over a tax credit at some point in the future.

bailey99 · 23-07-2020 11:57pm

What date in April is it until? 1st or 30th? I can't find it anywhere.

Cookie_Monster · 23-07-2020 11:59pm

625 is the total maximum over the 6 months, or the max on each occasion?

Muahahaha · 24-07-2020 12:19am

bailey99 wrote: »

What date in April is it until? 1st or 30th? I can't find it anywhere.

I havent seen it mentioned anywhere either, a lot of the detail of this still has to be filled in. Im guessing though it is only going to be to April 1st as going to the 30th would stretch into the tourist season too much for the governments liking. Also April 4th is Easter Sundy when a lot of people would head away anyway.

Cookie_Monster wrote: »

625 is the total maximum over the 6 months, or the max on each occasion?

Yeah total maximum is 625 which gives you a tax rebate of 125. A couple can spend 1,250 together and get a rebate of 250.

They're saying the minimum spend is 25 euro. As yet it is unclear if that is 25 euro per receipt or just overall. Id guess it is per receipt because otherwise you'd have people who spend a tenner on their lunch in a cafe every day being able to claim it.

eclipsechaser · 24-07-2020 12:19am

Cookie_Monster wrote: »

625 is the total maximum over the 6 months, or the max on each occasion?

Total maximum. If you're a couple who work then you can do 625 each.

Scoondal · 24-07-2020 3:09am

The government is laughing at the citizens.

Scoondal · 24-07-2020 3:11am

bailey99 wrote: »

What date in April is it until? 1st or 30th? I can't find it anywhere.

You won't find it anywhere. They are laughing at us. Do not fall for this rubbish.

chasm · 24-07-2020 3:45am

So, those who are excluded may as well holiday abroad so.

jams100 · 24-07-2020 4:35am

I don't think this is going attract much extra tourism business. Considering a fair amount of people are too lazy to claim back any overpaid tax at the end of the year why would they do this?
It's quite clunky too, you have to possibly download an app, take pictures of possibly multiple receipts all for max €125 which you won't physically see (tax credit). It's fine if you were going to be going on holiday during winter anyway but families will have kids in school etc. I don't think its acts as enough motivation.
I'm not suddenly going to go down the country because there's 20% off a hotel, maybe that's just me though, overall I can't see this stimulating the domestic tourism sector.

wyndham · 24-07-2020 4:54am

jams100 wrote: »

I don't think this is going attract much extra tourism business. Considering a fair amount of people are too lazy to claim back any overpaid tax at the end of the year why would they do this?
It's quite clunky too, you have to possibly download an app, take pictures of possibly multiple receipts all for max €125 which you won't physically see (tax credit). It's fine if you were going to be going on holiday during winter anyway but families will have kids in school etc. I don't think its acts as enough motivation.
I'm not suddenly going to go down the country because there's 20% off a hotel, maybe that's just me though, overall I can't see this stimulating the domestic tourism sector.

Agreed, absolute garbage. Limited to Failte Ireland registered properties. The govt must be aware that the take up on this will be minimal. Badly conceived, badly planned, badly executed. Unlikely to have any real positive effect on the dismal upcoming off season facing tourism businesses in Ireland. This will not create any demand for domestic travel that wouldn't have already existed, so I really don't see the point of it.

Former Former · 24-07-2020 7:31am

This is literally free money for going on holiday.

It is incredible how some people cannot see the good in anything.

nyc-dublin · 24-07-2020 8:17am

Former Former wrote: »

This is literally free money for going on holiday.

It is incredible how some people cannot see the good in anything.

When it comes to the government and schemes like this, nothing is really "free" though is it. Someone pays.

angel eyes 2012 · 24-07-2020 8:24am

Fann Linn wrote: »

I hope Revenue updates their App so that we can upload the receipts. I managed to upload 1 med expense in early Jan and since then it's been back to the auld pen and paper as their app is fcuked.

Slightly off topic but I've been submitting medical expenses online for at least 8 years now and I'm never asked for receipts to be uploaded. My medical bills were over 10k a couple of years ago but I just retain the receipts if revenue ever come knocking.

Ohmeha · 24-07-2020 8:25am

nyc-dublin wrote: »

When it comes to the government and schemes like this, nothing is really "free" though is it. Someone pays.

Yep, this Bargain Alert is obtain discount now and pay for it later through your tax increases in 2022/2023/2024

um7y1h83ge06nx · 24-07-2020 8:27am

nyc-dublin wrote: »

When it comes to the government and schemes like this, nothing is really "free" though is it. Someone pays.

It is reducing the tax take as it will result in taxpayers paying less tax. Of course they will be paying VAT on anything they buy and the workers in the restaurants etc. will be paying their income tax. So the overall cost to the State isn't probably all that much.

I think it's a great idea to stimulate the economy a bit and help out businesses.

odyssey06 · 24-07-2020 8:29am

angel eyes 2012 wrote: »

Slightly off topic but I've been submitting medical receipts online for at least 8 years now and I'm never asked for receipts to be uploaded. My medical bills were over 10k a couple of years ago but I just retain the receipts if revenue ever come knocking.

As an aside, you can audited any year so keep receipts up to 6 years old.
No need for receipts older than that.
For these hospitality receipts, suggest taking a photo of them and saving them to gmail \ cloud etc.

Former Former · 24-07-2020 9:03am

nyc-dublin wrote: »

When it comes to the government and schemes like this, nothing is really "free" though is it. Someone pays.

It's a targeted measure to increase spending in one of the hardest hit sectors of the economy. This is a good idea.

coolshannagh28 · 24-07-2020 9:58am

wyndham wrote: »

Agreed, absolute garbage. Limited to Failte Ireland registered properties. The govt must be aware that the take up on this will be minimal. Badly conceived, badly planned, badly executed. Unlikely to have any real positive effect on the dismal upcoming off season facing tourism businesses in Ireland. This will not create any demand for domestic travel that wouldn't have already existed, so I really don't see the point of it.

The entire stimulus package seems to have been designed to limit actual direct government expenditure and is probably a reflection of the concerns in the DOF regarding our national debt level . It looks like a damp squib and they may come to regret not being more proactive.

stooge · 24-07-2020 10:14am

You may get a tax credit of up to 125E, but it will be interesting to see how many hotels have already inflated their Oct->april prices to take advantage of this i.e. more money in hotels pockets and no real difference to consumers/tax payers.

is_that_so · 24-07-2020 10:16am

stooge wrote: »

You may get a tax credit of up to 125E, but it will be interesting to see how many hotels have already inflated their Oct->april prices to take advantage of this i.e. more money in hotels pockets and no real difference to consumers/tax payers.

Well they are getting the VAT cut anyway so less justification for that.

the perfect ten · 24-07-2020 10:30am

eclipsechaser wrote: »

Total maximum. If you're a couple who work then you can do 625 each.

A lot of pensioners have to pay tax as well and so will be eligible.

JimmyVik · 24-07-2020 11:05am

jams100 wrote: »

I don't think this is going attract much extra tourism business. Considering a fair amount of people are too lazy to claim back any overpaid tax at the end of the year why would they do this?
It's quite clunky too, you have to possibly download an app, take pictures of possibly multiple receipts all for max €125 which you won't physically see (tax credit). It's fine if you were going to be going on holiday during winter anyway but families will have kids in school etc. I don't think its acts as enough motivation.
I'm not suddenly going to go down the country because there's 20% off a hotel, maybe that's just me though, overall I can't see this stimulating the domestic tourism sector.

I might wait til October before I visit anywhere too

GerardKeating · 24-07-2020 11:23am

is_that_so wrote: »

Well they are getting the VAT cut anyway so less justification for that.

Are they? Only the 23% rate is cut, most hospitality would be on 13.5% VAT

bobbyg · 24-07-2020 11:34am

chasm wrote: »

So, those who are excluded may as well holiday abroad so.

Those that are excluded probably shouldn't holiday at all this year.

dulpit · 24-07-2020 11:46am

bobbyg wrote: »

Those that are excluded probably shouldn't holiday at all this year.

Why not? If you are on carer's you don't deserve a holiday? If you are on a state pension you don't deserve a holiday?

odyssey06 · 24-07-2020 11:53am

dulpit wrote: »

Why not? If you are on carer's you don't deserve a holiday? If you are on a state pension you don't deserve a holiday?

I think the implication is not that they don't deserve a holiday but rather that the holiday might present extra risks for them (or the person they are caring for) - more likely to be in vulnerable group.

bobbyg · 24-07-2020 12:04pm

dulpit wrote: »

Why not? If you are on carer's you don't deserve a holiday? If you are on a state pension you don't deserve a holiday?

If you are a carer you definitely should not go on holiday due to the extra risk. I think most people deserve a holiday but not everyone can afford one and if you are not paying enough tax to benefit from this scheme you may not be able to afford a holiday this year.

dulpit · 24-07-2020 12:06pm

odyssey06 wrote: »

I think the implication is not that they don't deserve a holiday but rather that the holiday might present extra risks for them (or the person they are caring for) - more likely to be in vulnerable group.

I took it that the implication was that he felt that only paid salary workers deserve holidays, and anybody on social welfare are spongers, but maybe I'm reading too much into it.

JimmyVik · 24-07-2020 2:01pm

dulpit wrote: »

I took it that the implication was that he felt that only paid salary workers deserve holidays, and anybody on social welfare are spongers, but maybe I'm reading too much into it.

I think they were saying that the people who pay for this scheme should be the ones who get the benefit of it.

dulpit · 24-07-2020 2:19pm

JimmyVik wrote: »

I think they were saying that the people who pay for this scheme should be the ones who get the benefit of it.

That's the progressive Ireland we want to live in... :rolleyes:

um7y1h83ge06nx · 24-07-2020 2:27pm

dulpit wrote: »

That's the progressive Ireland we want to live in... :rolleyes:

But is it not progressive? It's a stimulus package designed to help boost the struggling tourism industry, keep businesses viable and people in jobs.

It's also good to give something back to the people who fund our public services etc. by paying income tax.

I would guess your bug-bear is that this will not necessarily be open to every citizen such as the long-term unemployed. But I would imagine most if not all that are ineligible for this are already receiving regular money from the State in the form of Jobseekers Allowance, Disability Benefit/Pension etc. which dwarves the amount that can be claimed back through this initiative.

Scoondal · 26-07-2020 9:50pm

JimmyVik wrote: »

I think they were saying that the people who pay for this scheme should be the ones who get the benefit of it.

Yes. And prices have not gone up yet in the place that I am eyeing up. I need to book it tomorrow.

Scoondal · 26-07-2020 9:52pm

Maybe some people think that the citizens who do nothing should be given a €500 voucher. Eh, that does not encourage spending and money circulation. That's basic economics.

dulpit · 26-07-2020 10:17pm

Scoondal wrote: »

Maybe some people think that the citizens who do nothing should be given a €500 voucher. Eh, that does not encourage spending and money circulation. That's basic economics.

Carers do nothing? Pensioners do nothing? People on disability do nothing? People who may have worked for years who have hit a rough patch do nothing?

Scoondal · 26-07-2020 10:39pm

dulpit wrote: »

Carers do nothing? Pensioners do nothing? People on disability do nothing? People who may have worked for years who have hit a rough patch do nothing?

Those people of course should have a holiday scheme. But this scheme is only for tax payers. That is what the government decided.
They have excluded people who do not pay income tax.
But people who do nothing, are already looked after.

26-07-2020 11:01pm

It's a shoddy 'do something to be seen doing something' scheme. Very few people will care enough to bother their asses taking photos of their receipts. A saving of €125 that you won't see, off a spend of €625, spent over the course of 6 months? I mean come on, the amount of people likely to bother their hole is very small and it's done nothing to make me feel like I should be giving my money to hotels when I'm not sure if the country will be on it's knees come april, with every second person predicting a slobberknocker recession coming over us.

I feel sorry for the hotels and restaurants, but I wouldn't be pushing to the front of the queue for this, myself.

Also, i did hear on the news that hotels are booked solid at the moment, and they're price-gouging already? Hard to have sympathy. I do think the restaurants will be harder hit, as it's tougher for them to price gouge.

Oh, and I also heard about the 2% being taken off VAT for retail.. another offering of nothing. It's more of an insult than a scheme to assist.

Former Former · 26-07-2020 11:11pm

[Deleted User] wrote: »

It's a shoddy 'do something to be seen doing something' scheme. Very few people will care enough to bother their asses taking photos of their receipts. A saving of €125 that you won't see, off a spend of €625, spent over the course of 6 months? I mean come on, the amount of people likely to bother their hole is very small and it's done nothing to make me feel like I should be giving my money to hotels when I'm not sure if the country will be on it's knees come april, with every second person predicting a slobberknocker recession coming over us.

I feel sorry for the hotels and restaurants, but I wouldn't be pushing to the front of the queue for this, myself.

Also, i did hear on the news that hotels are booked solid at the moment, and they're price-gouging already? Hard to have sympathy. I do think the restaurants will be harder hit, as it's tougher for them to price gouge.

Oh, and I also heard about the 2% being taken off VAT for retail.. another offering of nothing. It's more of an insult than a scheme to assist.

If the rebate was higher, you'd be giving out that the government was just giving more money to those that don't need it.

Hotels are pretty solidly booked now, but not for the periods when this scheme will operate. That's the whole point.

There is a recession on the way but the idea of things like this and the VAT cut is to stimulate spending to lessen the effect. If people don't bother claiming their rebate, then even better - they've spent the money and the exchequer keeps the 20%, let's hope lots of people are too lazy to do it.

You've such a massive chip on your shoulder that nothing would please you, but just be aware you don't understand the first thing about it.

26-07-2020 11:17pm

Former Former wrote: »

You've such a massive chip on your shoulder that nothing would please you, but just be aware you don't understand the first thing about it.

Clearly i know a lot more than you, if you think this will be the saving grace of any business.

I know plenty about it, and enough to know it's a stimulus package in name, and name only. It won't stimulate anything. Most of the people I know haven't a notion it even exists.

The only people that will benefit from this were going to be booking anyway. It's a non-scheme that does nothing to benefit anyone except those who would have happily booked a break away and not cared about claiming money back. It's clearly the government trying to avoid spending as much as possible. They shouldn't have bothered.

The only upside to it is that at least it is a scheme that disproportionately benefits the working public... at last.

odyssey06 · 27-07-2020 9:46am

Deleted User wrote: »

It's a shoddy 'do something to be seen doing something' scheme. Very few people will care enough to bother their asses taking photos of their receipts. A saving of €125 that you won't see, off a spend of €625, spent over the course of 6 months? I mean come on, the amount of people likely to bother their hole is very small.

Hundreds of thousands of ordinary people already do this for claiming MED1 receipts.
And have done so for years.

coolshannagh28 · 27-07-2020 9:48am

Deleted User wrote: »

Clearly i know a lot more than you, if you think this will be the saving grace of any business.

I know plenty about it, and enough to know it's a stimulus package in name, and name only. It won't stimulate anything. Most of the people I know haven't a notion it even exists.

The only people that will benefit from this were going to be booking anyway. It's a non-scheme that does nothing to benefit anyone except those who would have happily booked a break away and not cared about claiming money back. It's clearly the government trying to avoid spending as much as possible. They shouldn't have bothered.

The only upside to it is that at least it is a scheme that disproportionately benefits the working public... at last.

The scheme is more of a reflection of government finances than a stimulus .

Dempo1 · 27-07-2020 10:02am

Anyone deluded enough to think they'll be getting 20% off on a staycation need to understand how this will really work. Gouging as already commenced, so Hotels will quietly raise their prices, announce fantastic offers and some will bite, in essence you'll spend more than 20% with gouging to claim a rebate from spending more.

Let's assume the offer is taken up, use a dingle hotel currently offering a family room for over €2400 per week, would anyone be crazy enough, I'd sooner buy a tanning machine and wait till next year for a sun holiday at a fraction of that cost.

And can we assume Vat reductions will be passed on? Not in a month of Sundays I'm afraid.

It's the most convoluted hair brained idea of a scheme, wait till 2022 to get a rebate, just silly beyond belief, like this governments green list notions, I dispair....

Govt scheme:20% off hotels, restaurants. October to April 2021

Comments