The government have now released additional information on the Eat Out to Help Out Scheme which I summarise below.
What does the scheme cover?
The Eat Out to Help Out Scheme offers a discount to diners and encourages them to eat out.
The scheme can be used:
- all day, Monday, Tuesday and Wednesday from the 3rd August to 31st August 2020
- to offer a 50% discount, up to a maximum of £10 per person, to diners for food or non-alcoholic drinks
- the money will then be claimed back from the government
There will be no limit to the number of times customers can use the offer during the period of the scheme. However customers cannot get a discount for someone who is not eating or drinking.
Both Alcohol and service charges are excluded from the offer.
Takeaway meals do not qualify however if a customer purchases a meal with the intention of eating it but then takes it away and leaves the premises, you can still apply the discount.
You must register for the scheme by the 31 August.
Who can register?
You can register if your establishment:
- Sells food for immediate consumption on the premises
- Provides its own dining area or shares a dining area with another establishment for eat in meals
- was registered as a food business with the local authority on or before the 7th July 2020
You cannot register:
- an establishment that only offers takeaway food and drink
- catering services for private functions
- a hotel that provides room service only
- dining services (such as packaged diner cruises)
- mobile food vans or trailers
What will you need to register?
- your government gateway id and password for your business
- name and address of establishment to be registered
- UK bank account details
- address of the bank account for the business
I include a link below to the government page you can use to register for the scheme.
What records must you keep?
For each day you use the scheme you must keep records of:
- number of people who have used the scheme in the 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.
When can you make a claim?
The first point to make is you cannot claim until the 7th August 2020 which will be the date the service will open.
The service will close on the 30th September 2020 so you must submit all claims before that date.
You must wait 7 days from registration to make your first claim and HMRC have stated they will pay eligible claims within 5 working days.
Claims can be submitted on a weekly basis.
How will the claim be treated for tax?
Any money received from the scheme will be treated as taxable income and if you are VAT registered VAT will need to be accounted for on the amounts received.
Finally, I am sure you have thought of this but if you do register make sure you advertise this fact, people love a discount!
We hope you found the above helpful and if you have any queries please get in touch.
Telephone: 01392 360008