The Chancellor announced several measures to support people and businesses in his Mini-Budget on 8 July. Here I’ll focus on the Eat Out to Help Out Scheme.
Also check our my previous blog on the VAT Rate cut to 5% for Food, Accommodation and Attractions.
Eat Out to Help Out Scheme
- Any hospitality business will be able to sign up to the scheme with the Government from Monday 13 July 2020
- The scheme allows them to provide 50% discounts to guests, up to £10 per head, including children
When does it apply?
- All day, every Monday, Tuesday, and Wednesday
- 3 August 2020 to 31 August 2020
Who can join the Eat Out to Help Out Scheme?
- Any establishment providing eat in food
- With dedicated seating area, or shared seating area with another establishment
- You were actively trading on 7 July 2020
Who can’t join the scheme?
- Establishments providing a take-away service only
- Hotels providing room service only
- Establishments providing private catering
What does the 50% discount apply to?
- All day every day service
- Hot and cold food – eat in only
- Non-alcoholic drinks
- Not alcoholic drinks
- Not service charges and tips
- Includes all guests, including children
*The discount does not apply to take-away food and drink, but some of this may still be covered by the VAT rate cut to 5%
Also have a read of our blog on VAT on take-away food
What are the important dates?
- 13 July 2020: register for the scheme. Here is the Government site with info and to register
- 3 August 2020: start offering discounts (only if you’re already registered)
- 31 August 2020: scheme closes
- 30 September 2020: last date to make a claim
How do you register?
You can register from Monday 13 July 2020
Register with HMRC here
You’ll need your business info including:
- Government gateway logins
- Name and address of each establishment you’re registering
- Bank details you want the scheme funding to go into
- Address the bank account is associated to
- VAT number
- Employer PAYE number
- Corporation tax or self-assessment number
*we have all this info if you’re our client
How does it work?
We’re expecting more detail when the scheme goes live but here’s what we know:
- Each establishment has to record daily details of 50% discounts given to customers, including:
- number of people using the scheme with you
- total value of sales using the scheme
- total amount of discounts given per day
- the Government will refund these discounts to you when you claim
- We think it’s essential to have an electronic point of sale that will record this information at the point of sale, otherwise it is going to cause you a lot of work and headaches!
- You should be able to set up a discount on your EPOS that you can use with ordering and sales
- Check out our iZettle vs Square blog to see the benefits of EPOS systems
How do you claim the discounts back?
- You will claim the amounts discounted from your customers back from the Government
- Wait 7 days from registering to make your first claim from the Government
- When you register you’ll be given a reference. You’ll need this to make your claims
- Claim every 7 days
- Funds should be in your account within 5 working days
What about the VAT rate cut to 5%
- This works alongside the VAT rate cut, so you’ll also need to update your sales systems with this update
- More on our VAT rate cut blog
What next?
- Get up to speed as quickly as you can with these changes and the VAT rate cut changes
- Register as soon as possible on 13 July 2020
- Make sure your systems can cope
- Now is the time to get an EPOS system set up, it will save you so much time and stress!
- Get in touch if we can help with any of this
- And remember to breathe and take things one step at a time (How do you eat an elephant? One bite at a time!)
We’re here for you
Check out our new COVID19 Resource page for loads of info.
Join our private Facebook page for Small Business Owners.
Book in a 30 minute zoom call with me.
Sign up to our Survive and Thrive webinar to help you get back up and running.
Stay safe. Stay strong.
Sharon x
