Registered businesses can now make claims through the Eat Out to Help Out scheme

Businesses that have registered for the Eat Out to Help Out scheme, as per our previous article, can now make a claim for the discounts given to diners on a weekly basis.

HMRC said that the scheme, that gives diners a 50% discount, up to £10 per person on Mondays to Wednesdays between 3 and 31 August, had been used over 10.5m times in the first week.

How can I make a claim?

You can now make a claim for each week you use the scheme to claim back discount given on food and non-alcoholic drinks using HMRC’s online portal which can be accessed here.

You can make up to 5 claims, corresponding to each week of the scheme, and you will need to have accurate details for each week before you claim. Please note that you need to wait 7 days from the date of registration to make a claim and you can only claim for discounts given on or after the date you registered, not before.

To proceed with your claim, you will need to choose the week you are claiming for and provide the total number of covers and claim value for each venue registered for the scheme for the chosen period and repeat this process for each week you use the scheme.

Once completed, you will get a reference number. After HMRC has checked your claim is correct, the amount will be paid by BACS into the account given on registration within 5 working days.

The portal will close on 30 September, please make sure you’ve submitted all your claims on or before this date.

What about the tax treatment?

You still need to pay VAT on the full amount of each bill before any discount is applied, taking into consideration the different rates on each element. HMRC have provided guidance on how the discount and VAT should be calculated with specific examples, which you can find here.

The correct amount should then be recorded, either through your POS or bookkeeping system. If your systems do not allow you to account this accurately, you will need to manually adjust your VAT account after the sale to ensure it is reflected in the correct VAT return for the period the transaction took place.

The amount you receive for your claim will be treated as a taxable income.

If you need support with your VAT calculations, bookkeeping system or any other matter, please get in touch with our EQ Leisure specialists via leisure@eqaccountants.co.uk or call one of our offices.