Support for Restaurants

Eat Out to Help Out Scheme

One of the industries that are hardest hit during this coronavirus times is the eateries and restaurant industry. In order to provide an impetus to this industry, the chancellor Rishi Sunak has come up with an “Eat out to Help Out Scheme”.

The restaurants would have to first register for this scheme to benefit from it. Under this scheme, the registered restaurants can offer a 50% discount, up to a maximum of £10 per person, to diners for food or non-alcoholic drinks to eat or drink in. The restaurants can then claim the discount money back from the government. This scheme aims to provide incentives to restaurants so that they can attract diners by providing discounts.

There is absolutely no limit on the number of times customers can use the offer during the period of the scheme.

Period of the scheme

The scheme shall operate all day - every Monday, Tuesday, and Wednesday from 3 to 31 August 2020.

Who can register for the Eat Out to Help Out scheme?

Following establishments can register for this scheme:

• It sells food for immediate consumption on the premises
• It provides its own dining area or shares a dining area with another establishment for eat-in meals
• It was registered as a food business with the relevant local authority on or before 7 July

Registration will close on 31 August 2020. You can click here to register for the scheme. Upon registration, you will receive a registration reference number which will be required at the time of making the claim.

The following establishments cannot register:

• an establishment that only offers takeaway food or drinks
• catering services for private functions
• a hotel that provides room service only
• dining services (such as packaged dinner cruises)
• mobile food vans or trailers

Pre-requisites for registration

To register under the scheme, you must have the following:

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

You may also need your:

1. VAT registration number (if applicable)
2. employer PAYE scheme reference number (if applicable)
3. Corporation Tax or Self-Assessment unique taxpayer reference

Other Important points

1. Alcohol and service charges are excluded from the offer.
2. Under the scheme, your customers cannot get a discount for someone who is not eating or drinking.
3. You’ll still need to pay VAT based on the full amount of your customers’ bills.
4. Any money you receive through the scheme will be treated as taxable income.
5. If you are registering 25 establishments or less, you must provide the details of each.
6. Registering more than 25 establishments:
   • You will not be required to give details of all establishments if you’re registering more than 25 establishments that are part of the same business.
   • You need to provide a link to a website that contains details of each establishment participating in the scheme including the trading name and address.
   • If HMRC requests, then there might be a need of providing a list with details of all participating establishments.
7. Click here for more information on eligibility and how to offer the discount.

How to make the claim?

No claims under this scheme can be made yet. The service to claim reimbursements will be available from 7 August 2020. The service will close on 30 September.

You can make your first claim after 7 days from registration. HMRC will pay eligible claims within 5 working days. The claims can be submitted on a weekly basis.

Recordkeeping requirement

Following records need to be kept for each day you’re using the scheme:

• The total number of people who have used the scheme in your establishment
• The total value of transactions under the scheme
• The 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.

By Dave Jangid | July 14, 2020