How to register your business for the Eat Out to Help Out scheme

The Summer Economic Statement saw Chancellor Rishi Sunak announce the Eat Out to Help Out scheme, aimed at helping eat-in food establishments by providing a discount up to 50% for diners, which can be claimed back from HMRC.

Participating restaurants, cafes and other venues providing sit-in meals will be able to offer the discount from the 3rd to 31st August all day, every Monday, Tuesday and Wednesday. The 50% Eat Out To Help Out discount will be available, up to a maximum of £10 per person for food or non-alcoholic drinks, to eat or drink in.

Does my restaurant qualify for the Eat Out To Help Out scheme?

You may only register your business if your establishment meets the following criteria:

• 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 relevant local authority on or before 7th July

Situations where you cannot register include the following:

• Your establishment only offers takeaway food or drink
• Catering services for private functions
• A hotel that provides room service only
• Dining services (such as packaged dinner cruises)
• Mobile food vans or trailers

For more details on which business are eligible to use the scheme, click here. HMRC also provide details of which sales the discount can be applied against here.

HMRC has also provided a useful FAQ section providing specific examples of which establishments are eligible to join the scheme and details of what counts as premises.

Registering for the Eat Out to Help Out scheme

As with some other Government schemes, accountants are not able to assist their clients register for the scheme and make claims for the grant monies on behalf of their clients.

Eligible businesses will therefore need to do this themselves, using their Government Gateway account. You can register your business here.

To register, you must have:

• The Government Gateway ID and password for your business (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
• 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)
• The date your business started trading

You may also need your:

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

What happens after you have registered?

HMRC advises you will be registered instantly and will receive a registration reference number – you should keep a note of this as you will need this reference when you claim the reimbursement.

You will also be added to a list of registered establishments that will be available to the public. The list of registered establishments isn’t currently available.

If you have more than one establishment (but less than 25), you are encouraged to register all establishments that are eligible to offer the scheme individually. Otherwise, HMRC will advise that you may experience delays if you only register one establishment and wish to add new establishments. Its current advice is to register each establishment separately.

If you’re registering more than 25 establishments that are part of the same business, you do not have to provide details for each one.

You should provide a link to a website which contains details of each establishment participating in the scheme including the trading name and address.

If you want to be removed from the list of registered establishments, you should contact HMRC who will remove you manually. This is not immediate, so you must tell customers that you are no longer offering the discount.

Offering the Eat Out To Help Out discount

You should wait until you are fully registered before you offer any customer discounts and you cannot offer discounts before 3rd August, at the earliest.

HMRC expects any registered business to offer the discount during the whole of your opening hours on all the eligible days that you are open and on all qualifying sales of food or drink.

You should include the Eat Out to Help Out Scheme name on the bill when you offer the discount.

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.

Promoting Eat Out To Help Out

Once you have registered for the Eat Out to Help Out Scheme, HMRC have produced some promotional material you may use at your premises, on social media and in other communications. 

Record keeping requirements

HMRC has imposed a number of record keeping requirements which apply for each day you use the scheme, you must keep records of the:

• 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
• include the Eat Out to Help Out Scheme name on the bill when you offer the discount.

How to make a claim

The Eat Out To Help Out claim service is not yet open and HMRC anticipate the service will be available from 7th August 2020.

HMRC will provide more guidance on how to make a claim when the registration service is open.

When do claims end for the Eat Out To Help Out scheme

Claims for the Eat Out To Help Out service will close on 30th September.

You must wait seven days from registration to make your first claim. HMRC will pay eligible claims within five working days.

You will be able to submit claims on a weekly basis.

How does tax and VAT work?

You will need to pay VAT based on the full amount of your customers’ bills. Please find more details about the temporary 5% VAT rate which applies to the hospitality sector from 15th July here.

HMRC has confirmed that any money you receive through the scheme will be treated as taxable income.

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Date published 22 Jul 2020 | Last updated 24 Jul 2020

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.