Posted on Jul 27, 2020
Earlier this month, Chancellor Rishi Sunak announced the upcoming Eat Out to Help Out Scheme which is aimed at encouraging people to eat out following lockdown. This allows restaurants, cafes, bars and other establishments taking advantage of the scheme to offer a 50% discount to customers throughout August between Monday to Wednesday each week. The reduction will be valid up to a maximum of £10 per person for food and non-alcoholic drinks. There will be no limit to how many times people can eat out on this scheme.
Who can join the scheme?
As long as you submitted your application to operate as a food business to the relevant local authority on or before 7 July 2020, you will be eligible to use the scheme. However, it is not available to businesses currently operating solely as a takeaway, catering for private functions, hotels offering room service only and mobile food vans. If you sell food for immediate consumption on your premises and have an in-house or shared dining area, you can benefit from this scheme.
Drawbacks of joining the scheme
While the purpose of this scheme is to help food establishments get customers back through their doors, some have voiced reservations about how the scheme will work in practice and whether they can fund the 50% discount while they’re waiting for the reimbursement from the HMRC. Many others feel that they are busy enough without having to worry about additional paperwork and making weekly claims on top of their already hectic schedules.
While it’s worth considering these aspects of the scheme, your business will also need to look at the implications of not joining the scheme during this month and the affect this will have on your footfall.
How to join the scheme
You can find out more about registering to join the Eat Out to Help Out Scheme here. You have until 31st August to register.
Claiming the money back
Every business taking part in the scheme will then be able to claim back the offered discount from the Government. You simply need to keep records of the number of people who have used the scheme in your business premises, the total value of transactions under the scheme and the total of the discounts you have given. This will need to be done for each establishment under the scheme.
You will be unable to claim back for a reimbursement until the 7th August and all claims will need to be completed by the 30th September when the service closes. You will be able to submit your claims on a weekly basis and can expect to receive eligible claims back from the HMRC within five working days of making the claim. You will still be expected to pay VAT on the full amount of your customers’ bills and any money you make using the scheme will be treated as taxable income.
If you have any concerns about the impact of the changes you’re making to your business are having on your insurance, please don’t hesitate to get in touch with Watkin Davies on 02920 626 226.
"Very efficient, always friendly and helpful. I have used Watkin Davies for years, and they have always been competitive. I received great support recently when I had to make a claim, so I'd highly recommend them."
"I was very impressed with the quality of the service - it was outstanding. The advisor, Ms Spear went above and beyond to give me the best driving insurance policy. The policy I have received is exactly what I was looking for. Thank you so much Ms Spear!"
"I've used Instructorcover Plus for my driving instructor insurance for a number of years. Not only are prices competitive, even at renewal, but customer service is fantastic. Call operators are always cheerful and incredibly helpful. Everything is always sorted in a single call, saving valuable time. Highly recommend."
"Absolutely superb service from the team, particularly Natalie. Very easy and simple process"
"As aways very efficient"
"I have used InstructorcoverPlus for my driving tuition insurance for a number of years. Their prices are always competitive and everyone I speak to is friendly and helpful."
"Ceri was very helpful and knowledgeable on the phone"
"Karrie Brewer was so helpful today, especially as one insurance company would not quote, so had to shop around for us, many thanks"
"Kelly is amazing. Very helpful and friendly, did a great job today with helping me out to get insured. Amazing service!"
"Great service. Got my first driving instructor insurance with this firm. Price was competitive and customer service provided by Jane was great. I will definitely recommend the service."
"Team were very helpful when it came time to renew my policy, taking the time to check and make any amendments needed. Would highly recommend."
"5 stars!"
"Excellent service from Watkin Davies as per usual. I love the way they do all the hard work researching best quotes and provide you with your options. All the staff are very friendly and professional, I have to highlight Ceri who always does a fantastic job for me and my family."
"Really helpful and efficient customer service, friendly and knowledgeable too. I would highly recommend InstructorcoverPlus."
"I m a returning customer and what a wonderful experience. Emma is new to her role but she was very helpful and polite throughout. She got the quote done very quickly and managed to beat all my other quotations. I therefore didn't have to waste any more time. Further she offered me three instalments at 0% which is helpful in this current economic climate. The paperwork was sent straight away. Highly recommended."
"Once again, could not have been more helpful! Still a pleasure to speak to a 'real person' who knew what they were talking about!"