Dáil Éireann Debate, Thursday - 26 November 2020
108. Deputy Aindrias Moynihan asked the Minister for Finance the consideration being given to extending the spend and stay scheme, given that with level 5 restrictions individuals are not able to avail of this scheme currently; and if he will make a statement on the matter. [39120/20]
View answer138. Deputy Christopher O'Sullivan asked the Minister for Finance his plans to review the stay and spend scheme in view of the current level 5 restrictions; and if he will make a statement on the matter. [39192/20]
View answer193. Deputy Paul McAuliffe asked the Minister for Finance his plans for amendments to the spend and save scheme in view of the current level 3 status of the country; and if he will make a statement on the matter. [29974/20]
View answer200. Deputy Imelda Munster asked the Minister for Finance his plans to amend the qualifying criteria for the stay and spend scheme; if non-taxpayers that have been excluded can be included in the scheme; and if he will make a statement on the matter. [28044/20]
View answerI propose to take Questions Nos. 108, 138, 193 and 200 together.
The purpose of the Stay and Spend scheme is to provide targeted support to businesses within the hospitality sector whose operations are likely to be most affected by continued restrictions.
Stay and Spend provides tax relief by means of a tax credit at the rate of 20% on qualifying expenditure of up to €625 per person, or €1,250 for a jointly assessed couple. It commenced on 1 October 2020. The tax credit is worth a maximum of €125, or €250 for a jointly assessed couple.
The scheme is due to operate until 30 April next year but the flexibility exists for me to extend its operation in 2021 beyond that date. However, it is too early as yet to take any decisions in that regard. Much will depend on how matters unfold in the weeks and months ahead. As I have said previously, I will be monitoring the scheme, to see how it’s working and if any changes need to be made. We need to keep policies that are working, and change ones that might not be working as planned, but at all times, ensuring they are affordable.
In relation to non-taxpayers or those who may not have a sufficient tax liability to avail of the scheme, within the tax system, the normal position is that a tax credit can only benefit a person who has an income tax liability. For the Stay and Spend scheme, however, special arrangements have been made to extend the potential benefit as widely as possible so that, even where a person does not have an income tax liability, he or she may still benefit by virtue of having a USC liability. There are no plans to further broaden out the scheme in this regard.
It is important also to recall that the scheme should not be viewed in isolation from the other measures put in place to support businesses generally and the hospitality sector in particular. The VAT change; the rates waiver; the extension of the wage support scheme until next year and its extension to new or seasonal staff; and other Government measures all play a part in helping the sector cope with the challenges it faces.
