Eat Out To Help Out – How To Claim

Discover how to claim for discounts given with the Eat Out to Help Out Scheme

A large number of businesses have registered for the government’s ‘Eat Out to Help Out’ scheme, believed to be up to 84% of all businesses surveyed by UK Hospitality. The scheme, which offers a discount on food and non-alcoholic drinks, has proven incredibly popular with some establishments offering their diners 50% off (up to £10 per person). 

‘It is great to see so many businesses embracing the scheme. The chancellor recognised that our sector has been hit the hardest of all and this scheme goes some way to delivering the support vulnerable hospitality businesses need,’ commented UKHospitality chief executive, Kate Nicholls. 

HRMC have now released further detailed guidelines on how operators can claim the discount back from the Eat Out to Help Out scheme. Claims can start from the 7th of August, however this can only start for every business seven days from their initial registration. If you still wish to join the scheme, which runs until the end of August, you can register your business here.

Who can claim?

If your business is registered for the scheme and offered discounts to customers on Monday – Wednesday between 3 – 31 August you can:

– Claim back discounts given on food and non-alcoholic beverages

– Submit your claims by the end of September

It is important to make sure you enter your business details accurately. If you make a mistake or need to amend information after submitting a claim it might delay your payment which will be completed by BACS. You can make a claim after 7 days from the date of your registration. Only claims can be made for scheme discounts you offered on or after the date you registered your establishment. 

How to claim

Businesses will be able to files claims for every week of the month August and will be able to do so until the 30th of September. You must make sure that you do this yourself as an agent will not be allowed to complete your financial claims. 

If you claim too much, HRMC will not be able to correct this until 14 August.

If you claim too little, HRMC will not be able to correct this until 21 August.

You can make up to 5 separate claims before 30th September. You cannot claim after that any longer for your business.

When you log into the service you must choose the periods that you claiming for, these periods are:

– 3 to 5 August

– 10 to 12 August

– 17 to 19 August

– 24 to 26 August

– 31 August

You will be required to enter the total number of covers and claim value for each of your establishment(s) that has offered the scheme discount.

HRMC have create few examples on how to work out the total amount of discounts.

Records to keep 

To prove the link between the number of diners received the discount and the total value of scheme discount being claimed for in each period (each day) you must keep a record of the following:

– 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.

HMRC may ask for your records relating to the scheme.  

What you’ll need

You will need the records you have held on to for each day you’ve used the scheme, including:

– 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:

– records for each establishment

– overall total value of the claim for all establishments ready before you claim

What happens next

Once you’ve processed your claim(s), you will receive a claim reference number from HRMC. They will then check your claim is correct and pay the claimed amount by BACs into the bank account you provided when you registered (within 5 working days)

Paying tax

You will still need to pay VAT based on the full amount of your customer’s bill before the scheme discount is applied. This total amount needs to be reflected in the correct VAT return for the period in which the transaction took place. 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.

Additional information and helpful links

HMRC have published guidance with more information on eligibility and how to offer the discount.

You can watch a useful YouTube video below about how to participate in the scheme, keep records, and make a claim. For more information visit the government link.

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