Don't miss out on financial supports for Covid 19

Government is pouring massive sums into very generous social welfare and economic supports.

But this cannot last  and we will soon have to pay back every cent of the €30bn we are borrowing to help pay for them in years to come.

So we are in that eerily quiet period ‘before the storm.’ An unprecedented financial shock is looming for us all – it just hasn’t hit yet.

This makes it even more vital for people to be aware - and take advantage - of Covid 19 supports before they are gone.

Here’s what is available – and how to cash in:

Stay and spend

This is a handy way to get some money back on what you eat out or stay overnight in Ireland.  

It’s a tax credit worth up to €250 net for every jointly assessed couple, or half that for single people.

Annoyingly, this scheme runs from October 1  2020 to April 30 2021 so it misses the entire holiday season this year.

When I put this to the Department of Finance, a spokesperson explained that" the idea behind the initiative is that it benefits the hospitality sector during the off- season. Hence the dates the scheme runs from/until is Oct-April."

The break might be worth taking into account if you are thinking of booking an autumn, Christmas or spring break in Ireland.

All you need to do is keep receipts whenever you spend money on food, accommodation and non-alcoholic drink.

Tax relief applies at 20% of the spending up to the value of €625 per person and €1250 per couple. That would work out at a cash into your hand of  €125 per individual or €250 per jointly assessed couple.

There is a minimum spend of €25 per person each time. 

My advice would be to keep all your receipts just in case some aren’t eligible as the business in question must register with Revenue and be tax compliant.

The Revenue also tells me that it will be operated through a mobile phone app, just like health insurance claims, which will make it handy for scanning those pesky slips of paper that always seem to get lost.

If you don’t pay enough income tax to absorb the tax credit the costs may be set against a USC liability.

Value-Added Tax (VAT) A 6-month reduction in the standard rate of VAT from 23% to 21% will apply, effective from the beginning of September 2020. 

This will make it slightly cheaper to buy most products - if the retailer passes on the savings. So watch out for signs from those who do so as they will surely advertise it.

The Revenue commissioners has also suspended penalties and on VAT returns - and reduced interest on tax due - for self employed people. 

This makes it tempting to ignore the dreaded task of totting up all your VAT receipts and outgoings.

However, the breaks  generally only apply if you actually file your returns.

You don’t have to pay up straight away but make sure to at least file - or you could be in trouble.

Help to buy scheme

Income tax relief for the Help-to-Buy Scheme for first time buyers has increased to €30,000 (up from €20,000), or 10% (up from 5%) of the purchase price.

Buyers can now max out on this grant on €300,000 homes, rather than the previous amount of €200,000.

Cycle to Work Scheme

This valuable perk has also increased from €1,000 to €1,250 (and €1,500 for electric bikes).

The money must be spent by your employer.

If your boss is really nice and wants to buy you a free bike you get a tax free perk. But normally you have to repay the cost from your wages, saving tax on this portion of your income.

You can now get this valuable perk once every four years  (previously it was five), so those who bought a new bike in 2016 or before can upgrade again now.

It’s also worth remembering that you can include all sorts of biking gear in the package, so make sure to make the most of that.

Medical Expenses

With the health system just getting back into action, our medical bills are going to go up as we are called in for those long overdue consultants' appointments. 

Make sure you make the most of what you can claim for these and many other medical expenses outlined on Revenue.ie

All you have to do is keep your receipts and claim at the end of the tax year.

Taxback.com stats show that only approximately 4 in 10 Irish people don’t bother claiming for this most neglected of reliefs.

You usually can claim relief at 20% apart from nursing home expenses, where the relief goes up to 40%.

Working from home

If you’re one of the hundreds of thousands of people now working from home, you can get tax relief on the cost of utilities and other expenses.

An employer can make a voluntary payment to an employee of €3.20 per workday free of any PAYE, PRSI or USC dues. 

This is meant to cover expenses such as heating and electricity costs. However, employers don’t have to make this payment and  many are not in a financial position to do so. 

There are some reasons to be hopeful. The money we have in the bank has more than doubled to €§bn from just €2bn last year – and sales in the shops are roaring ahead once more. expenses are for personal use.