Register your establishment for the ‘Eat Out to Help Out Scheme’ from 13 July 2020

The new Eat Out to Help Out Scheme will allow restaurants, cafes  and other eating establishments to offer diners a discount to encourage them to eat out on a Monday, Tuesday and Wednesday in August.

The scheme offers a 50% discount, up to a maximum of £10 per person, for people to spend on food or non-alcoholics drinks.  There is no limit on the number of times that a customer can use the offer in August. Alcohol and service charges are excluded.

The money must be claimed back from the Government and businesses can apply to be registered for the scheme from 13 July 2020.  Registration will close on 31 August 2020.

The scheme is open to all businesses who:

• sell food for immediate consumption on the premises
• provide their own dining area or share a dining area with another establishment for eat-in meals
• were registered as a food business with the relevant local authority on or before 7 July 2020

The scheme is not open to businesses who:

• only offer takeaway food or drink
• provide catering services for private functions
• are hotels that provide room service only
• provide dining services (such as packaged dinner cruises)
• operate from mobile food vans or trailers

To register, you must have:

• your Government Gateway ID and password (if you do not have one, you can create one when you register)
• the name and address of each establishment to be registered, unless you are registering more than 25 premises
• the UK bank account number and sort code for the business (only provide bank account details where a BACS payment can be accepted)
• the address on your bank account for the business (this is the address on your bank statements)

You may also need your:

• VAT registration number (if applicable)
• employer’s PAYE scheme reference number (if applicable)
• Corporation Tax or Self-Assessment unique taxpayer reference

If you are registering 25 establishments or less, you must provide the details of each.

Unfortunately, HMRC will not allow agents to register their clients for this scheme. They have also stated that if an application is based on dishonest or inaccurate information, the registration will be revoked.

Once you have registered your business you will receive a registration number which you will need when you make your claim for the reimbursement.  You will then be added to a list of registered restaurants that will be made available to the public.  You can remove yourself from this list at a later date, but you will have to do this by phoning HMRC. You will be able to download marketing materials to promote the scheme and the Government will advertise the scheme using radio, media and advertising.

You must be registered to start giving the discount to your customers from Monday 3 August 2020.  Once registered, you are expected to offer the discount during all opening hours on the eligible days on all qualifying sales of food and drink.

Records to be kept:

If you are using the scheme you must keep the following:

• total number of people who have used the scheme in your establishment
• total value of transactions under the scheme
• total amount of discounts you’ve given

If you are using the scheme for more than one establishment, you must keep these records for each.

Making a claim

The claims process will be open from 7 August 2020 and will close on 30 September 2020.  You cannot make a claim until 7 days after you first register, so businesses are encouraged to register early.  Claims can be submitted weekly and these will be paid into the nominated bank account within 5 working days.  HMRC have stated that fraud and compliance checks will be carried claims are made.

You will still pay VAT on the full amount of the customers bills and any income received through the scheme will be taxable.

For more information please see:

https://www.gov.uk/government/publications/get-more-information-about-the-eat-out-to-help-out-scheme

The information in this blog provides only an overview of  guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

Photo by Javier Molina on Unsplash