Details of the “Eat Out to Help Out” scheme confirmed

The Government has now confirmed details of the ‘Eat Out to Help Out’ scheme, announced by the Chancellor at his Summer Economic Update on Wednesday 8 July.

The scheme covers the cost to restaurants, cafes and pubs that sell food of providing a 50 per cent discount, capped at £10 per head, on food and non-alcoholic drinks purchased for consumption on the premises from Mondays to Wednesdays in August.

The scheme is open to businesses that were registered with their local authority as food businesses on or before 7 July 2020, provides or shares a dining area for eat-in meals and sells food for consumption on the premises.

HM Revenue & Customs says this could include:

  • restaurants
  • cafés
  • public houses that serve food
  • hotel restaurants
  • restaurants and cafes within tourist attractions, holiday sites and leisure facilities
  • dining rooms within members’ clubs
  • workplace and school canteens

Participating businesses are expected to provide the offer throughout their opening hours on the days that the scheme is in operation, Monday, Tuesday and Wednesday throughout August.

The scheme applies to food or non-alcoholic drinks, meaning that a coffee purchased without food to drink in a café’s seating area would be eligible for the discount.

The guidance also gives details of how businesses should apply the discount to customers’ orders. Service charges are not covered, while the £10 a head cap is based on the number of people at the table, including children. This means that the discount available to a table of six would be capped at £60, even if the discount for one or more individuals exceeds the £10 cap, assuming the table is covered by a single bill.

The scheme does not apply to takeaway food and drink, or catering services for private functions. It also does not apply to mobile vans or takeaways that provide tables and chairs on the pavement.

However, the guidance does confirm that the scheme can still be used where a customer orders food for dining in but then takes away the remainder of their meal.

The scheme also cannot be put towards:

  • alcoholic drinks
  • tobacco products
  • food or drink that is to be consumed off-premises
  • food or drink that is sold as part of a private party, event or function taking place within an eligible establishment.
  • food and drink combined with another service, like B&B.

Eligible businesses can register to take part in the scheme using an online portal, which is set to go live from 13 July 2020 here.

The discount can be provided alongside existing offers and comes in addition to a cut in VAT from 20 to five per cent for food and non-alcoholic drinks, as well as for accommodation and admission to attractions, which will apply from Wednesday 15 July until 12 January 2021.

HMRC guidance is also available. This has some handy worked examples of how the scheme will interact with other items you might find on bills like alcoholic drinks and service charges.

9/7/2020