Eat out to help out
The Government’s new Eat Out to Help Out scheme came into effect on 1 August. The scheme offers diners discounted bills on selected days in August in order to encourage consumers to return to pubs, cafes and restaurants.
The Chancellor Rishi Sunak announced the new programme which aims to support the licensed trade and restaurant industry including all who are employed in those industries earlier this year.
The aim of this article is to offer guidance to our clients who seek to operate the scheme:
Who can claim?
If you have registered your business for the Eat Out to Help Out Scheme and offered scheme discounts to diners on Mondays to Wednesdays between 3 and 31 August, you can:
- Claim back the discount given on food and non-alcoholic drinks
- Submit weekly claims for August until 30 September
You must make the claim yourself, you cannot ask an agent to do it for you.
You must enter accurate details for all the establishments that you are claiming for before submitting your claim. If you need to amend information later your payment may be delayed.
When you can claim
You can make a claim after 7 days from the date of your registration. The earliest you can make a claim is 7 August. You can only claim for scheme discounts you offered on or after the date you registered.
What you’ll need
You’ll need the records you’ve kept for each day you’ve used the scheme, including the:
- total number of diners (covers) who have used the scheme, including children
- total amount of discount you’ve given
- period you’re claiming for
- If you’re making a claim for more than one establishment, you will need to have the:
- records for each establishment
- overall total value of the claim for all establishments ready before you claim
How to claim
The service to claim reimbursement will be available from 7 August 2020.
You can make up to 5 claims before 30 September. You cannot claim after that.
When you sign into the service you must choose the periods that you claiming for, from:
- 3 to 5 August
- 10 to 12 August
- 17 to 19 August
- 24 to 26 August
- 31 August
You’ll also need to enter the total number of covers and claim value for each establishment that has offered the scheme discount.
Records you must keep
You can keep records relating to the scheme in a way that suits your business.
To show the link between the number of diners who got the discount and the total value of scheme discount being claimed for in each claim period, for each day you must have a record of the:
- total number of diners who have used the scheme discount in your establishment
- total value of all eat in food and non-alcoholic drink sold where the scheme discounts were given
- total value of scheme discounts you’ve given and claimed for
- If you are using the scheme for more than one establishment, you must keep these records for each.
What happens next?
Once you’ve claimed, you’ll get a claim reference number. HM Revenue & Customs (HMRC) will then check your claim is correct and pay the claim amount by BACs into the bank account you gave when you registered, within 5 working days.
You’ll still need to pay VAT based on the full amount of your customer’s bill before the scheme discount is applied. This amount needs to be reflected in the correct VAT return for the period the transaction took place.
If your point of sale system does not allow you to account for VAT accurately under this scheme, you can manually adjust your VAT account after the sale.
If you cannot include the adjustment in the period the transaction took place, you should estimate the VAT and you must account for any difference in your next VAT return.
The payment you receive will be treated as taxable income.
If you need to make a correction
HMRC are due to give instructions on this shortly.
If you need to correct any information given during registration or amend your registration, you’ll need to contact HMRC.
Full details of the scheme including how to register may be found at: https://www.gov.uk/guidance/get-a-discount-with-the-eat-out-to-help-out-scheme
- Change to Companies House bank detailsanies House bank details
- More than £1 billion in tax reliefs for creative industry
- Advisory Fuel Rates for next quarter come into effect
- Key dates for the Coronavirus Job Retention Scheme
- The first Child Trust Funds (CTFs) can now be claimed
- Four in five SMEs are confident over their Coronavirus recovery
- HM Revenue & Customs (HMRC) writes to 3,000 employers over furlough claims
- Government to launch new local lockdown grants
- CBILS ends on 30th September 2020
- How will you rebuild and recover? Funding launched to cover cost of professional advice
- Tax changes outlined in draft Finance Bill 2020 – 2021
- Coronavirus Business Interruption Loan Scheme expanded to more businesses
- VAT treatment of imported goods up to £135 to change under new rules
- HM Revenue & Customs publishes Job Retention Bonus guidance
- Small business Covid recovery boosted by £20million in new grants
- HM Revenue & Customs sets out Making Tax Digital plans for VAT and Income Tax
- HM Revenue & Customs sets out details of penalties for breaches of furlough and self-employment scheme rules
- Reminder: VAT payment deferral period has ended
- Banks list top 10 Coronavirus scams
- HM Revenue & Customs issues ‘nudge’ letters to people suspected of having undeclared overseas assets
- Second round of Self-Employment Income Support Scheme (SEISS) opens on Monday
- Key dates for Coronavirus support schemes, tax and Companies House
- Government extends childcare funding for families affected by the pandemic
- Green Homes Grant guidance published
- Eat Out to Help Out opens for claims
- Key dates for Coronavirus support schemes
- Eat out to help out
- New legislation introduced to protect redundancy pay of furloughed workers
- Seven tips to get start-ups off the ground
- Government confirms Coronavirus tax concessions in amended Finance Bill
- Future Fund expanded to more businesses
- Research finds lack of knowledge, information and skills are key barriers to Making Tax Digital compliance
- New corporate insolvency rules come into effect
- £84 billion of R&D tax credits unclaimed – Could you be eligible for a share of this funding?
- Government confirms Job Retention Bonus of £1,000
- Upcoming key dates for the Coronavirus Job Retention Scheme
- Paying for COVID-19: Government begins exploring tax take back
- Government confirms the next steps for the digitisation of taxation
- Government publishes detailed guidance on SDLT holiday
- HM Revenue & Customs confirms first arrest in connection with furlough fraud
- Reminder: Deferral of second payment on account
- HM Revenue & HM Revenue & Customs updates Self-Employment Income Support Scheme guidanceCustoms updates Self-Employment Income Support Scheme guidance
- Coronavirus apprenticeships guidance updated
- Download our updated Coronavirus Support grids
- Details of ‘Eat Out to Help Out’ scheme confirmed
- Guidance on hospitality and tourism VAT cut published
- Summer Economic Update
- Don’t forget to make an SEISS claim by 13 July!
- HMRC offers clarity on usual hours calculation for flexible furlough
- Coronavirus grants to businesses, employers and individuals are taxable
- Guidance published on repaying Coronavirus Job Retention Scheme overpayments
- Key dates for Coronavirus support schemes
- Government publishes new ‘Covid Secure’ guidance
- Remember to reinstate your VAT direct debit in time for your next payment
- HM Revenue & Customs clarifies repayments of Corporation Tax and anticipated losses
- Employers given 30 days to confess to furlough fraud
- RE OPENING…GET ON YOUR BLOCKS!
- Download our Coronavirus support for business timeline
- Managing Cash
- Helpful steps to improve credit control
- Top tips for improving profit
- Are you taking your business online? – Six steps to effective pricing
- HM Revenue & Customs publishes detailed guidance on calculating furlough claims from July onwards
- Further clarification issued on eligibility for second round of Self-Employment Income Support Scheme
- Government delays VAT Reverse Charge
- VAT deferral refund available
- Trade Credit Insurance backed by £10 billion guarantee
- Guidance on exceptional circumstances for higher rate SDLT refunds updated
- Whistleblowers make almost 2,000 allegations of furlough fraud
- Employees returning from parental leave continue to be eligible for furlough scheme
- Chancellor unveils changes to furlough scheme
- Self-Employment Income Support Scheme (SEISS) extended
- Coronavirus Future Fund opens to applications
- Coronavirus Statutory Sick Pay Rebate Scheme set to open for claims
- Maximum Government-backed loan amount for larger businesses increased to £200 million
- Temporary tax freeze on home office expenditure announced
- Tax treatment of expenses and benefits during COVID-19
- Money laundering supervision payment deferrals and deregistration announced by HM Revenue & Customs
- Changes to notifying an option to tax (VAT) on land and buildings during the Coronavirus pandemic
- COVID-19 – Re-build and recover – we’re here to help you get back on track
- New start-ups
- Owner Managed and Family Businesses
- Cashflow projections and budget assistance
- Tax payment plans
- R&D Tax Credits
- Dividend Tax Planning
- Inheritance Tax
- Business Advisory Services
- Contracts & Agreements
- Assistance with business plans and pricing reviews
- Payroll & HR advice
- Practical Employment Law Considerations For Returning to Work
- Employment contracts – changes to package and benefits
- Furlough – continuation and return to work
- Business Finance
- Loans and other methods of finance
- Property Owners
- COVID-19 – An assessment of safe working arrangements
- Coronavirus Job Retention Scheme (CJRS) extended until October
- “Covid Secure” practical workplace guidance for employers