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

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  • 23-07-2020 8:08pm
    #1
    Muahahaha
    Registered Users Posts: 19,613 ✭✭✭✭


    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


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    #2
    odyssey06
    Registered Users Posts: 27,961 ✭✭✭✭odyssey06


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

    "To follow knowledge like a sinking star..." (Tennyson's Ulysses)



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    #3
    dhaughton99
    Registered Users Posts: 1,695 ✭✭✭dhaughton99


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


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    #4
    odyssey06
    Registered Users Posts: 27,961 ✭✭✭✭odyssey06


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

    "To follow knowledge like a sinking star..." (Tennyson's Ulysses)



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    #5
    Fann Linn
    Registered Users Posts: 7,772 ✭✭✭Fann Linn


    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.


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    #6
    Muahahaha
    Registered Users Posts: 19,613 ✭✭✭✭Muahahaha


    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.


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    #7
    jimmycrackcorm
    Registered Users Posts: 14,329 ✭✭✭✭jimmycrackcorm


    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.


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    #8
    odyssey06
    Registered Users Posts: 27,961 ✭✭✭✭odyssey06


    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.

    "To follow knowledge like a sinking star..." (Tennyson's Ulysses)



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    #9
    Wesser
    Registered Users Posts: 1,813 ✭✭✭Wesser


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


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    #10
    PaybackPayroll
    Registered Users Posts: 127 ✭✭PaybackPayroll


    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.


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    #11
    Muahahaha
    Registered Users Posts: 19,613 ✭✭✭✭Muahahaha


    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.


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    #12
    bailey99
    Registered Users Posts: 1,192 ✭✭✭bailey99


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


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    #13
    Cookie_Monster
    Registered Users Posts: 24,470 ✭✭✭✭Cookie_Monster


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


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    #14
    Muahahaha
    Registered Users Posts: 19,613 ✭✭✭✭Muahahaha


    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.


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    #15
    eclipsechaser
    Registered Users Posts: 878 ✭✭✭eclipsechaser


    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.


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    #16
    Scoondal
    Registered Users Posts: 883 ✭✭✭Scoondal


    The government is laughing at the citizens.


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    #17
    Scoondal
    Registered Users Posts: 883 ✭✭✭Scoondal


    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.


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    #18
    chasm
    Registered Users Posts: 2,078 ✭✭✭chasm


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


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    #19
    jams100
    Registered Users Posts: 768 ✭✭✭jams100


    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.


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    #20
    wyndham
    Registered Users Posts: 2,284 ✭✭✭wyndham


    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.


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    #21
    Former Former
    Closed Accounts Posts: 7,728 ✭✭✭Former Former


    This is literally free money for going on holiday.

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


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    #22
    nyc-dublin
    Registered Users Posts: 23 ✭nyc-dublin


    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.


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    #23
    angel eyes 2012
    Registered Users Posts: 900 ✭✭✭angel eyes 2012


    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.


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    #24
    Ohmeha
    Registered Users Posts: 1,908 ✭✭✭Ohmeha


    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


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    #25
    um7y1h83ge06nx
    Closed Accounts Posts: 5,029 ✭✭✭um7y1h83ge06nx


    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.


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    #26
    odyssey06
    Registered Users Posts: 27,961 ✭✭✭✭odyssey06


    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.

    "To follow knowledge like a sinking star..." (Tennyson's Ulysses)



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    #27
    Former Former
    Closed Accounts Posts: 7,728 ✭✭✭Former Former


    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.


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    #28
    coolshannagh28
    Registered Users Posts: 1,476 ✭✭✭coolshannagh28


    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.


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    #29
    stooge
    Registered Users Posts: 1,396 ✭✭✭stooge


    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.


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    #30
    is_that_so
    Registered Users Posts: 32,136 ✭✭✭✭is_that_so


    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.


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    #31
    the perfect ten
    Registered Users Posts: 311 ✭✭the perfect ten


    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.


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