Get more information about the Eat Out to Help Out Scheme
Updated 1 September 2020
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Registration
Why you should use the Eat Out to Help Out Scheme
It will incentivise customers to eat in your restaurant or other eating establishment by giving them a discount which you can then claim back from the government. The scheme is UK wide and customers will be able to see who is taking part on GOV.UK. The scheme will drum up custom on quieter days of the week and means you can build your business back up.
How to register for the scheme
HMRC have made registration as simple as possible. Find out how to register on GOV.UK.
How HMRC checks your registration
Fraud and compliance checks will be carried out when you register for the scheme and make a claim.
Using an agent
An agent cannot apply on your behalf.
Designing a scheme that allows tax agents to apply on your behalf would have taken much longer to deliver, at a time when speed is the priority. We have worked hard to make the registration and claims process as easy as possible.
Eligible businesses
Establishments that are eligible for the scheme
Eligible establishments are those in which food is sold for immediate on-premises consumption. 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
Using other Coronavirus related schemes
You can still register for the Eat Out to Help Out Scheme if you’ve used other Coronavirus related schemes, such as Coronavirus Job Retention Scheme or the Self Employed Income Support Scheme
New food businesses
Provided you submitted your application to the relevant local authority on or before 7 July 2020, you will be eligible for the scheme.
Sales that are eligible
Eligible sales
The discount can be applied to food and/or non-alcoholic drink purchased for immediate consumption on premises, up to a maximum discount of £10 per diner (inclusive of VAT).
This includes soft drinks and/or packaged snacks, as long as they are for immediate consumption on the premises.
There is no minimum spend requirement.
Ineligible sales
The discount cannot be applied to the following items:
- 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
When you should offer the discount
When you register for the scheme, it is expected that you will offer it during the whole of your opening hours on all the eligible days that you are open and on all qualifying sales of food or drink.
If you’re normally closed on a Monday, Tuesday or Wednesday
You can only offer the discount on Mondays, Tuesdays and Wednesdays, when your business is open.
If a customer leaves the premises after ordering food or drink to dine in
If a customer is dining in and then takes away the remainder of their meal, the discount will still apply.
Non-alcoholic drinks
The scheme still applies if a customer only orders a non-alcoholic drink to drink in.
Eligibility for ‘on-premises’ consumption
What counts as ‘on premises’
For the purposes of this scheme, the term ‘on premises’ means any area set aside for the consumption of food or non-alcoholic drink by that establishment’s customers, whether or not that area may also be used by the customers of other establishments.
Hotels with a restaurant
If you operate a hotel with a restaurant, you can use the scheme for food and drink sold for immediate consumption on the restaurant premises. This does not include food and drink that is purchased as part of a wider service.
Cafés with an outdoor seating area
You can use the scheme and apply the discount to food or drink sold for immediate consumption on the café premises.
If you put a table and chairs on the pavement outside your take-away or mobile van
You cannot use the scheme. To be eligible your business must have the facility to offer dining on the premises. Establishments with only informal outside seating in an area that does not belong to the establishment and/or is not shared with other establishments, will not be eligible to participate in the scheme.
Outlets in a shopping centre
If you run an outlet in a shopping centre and share a designated dining area with other outlets, you can use the scheme and apply the discount to food or drink sold for immediate consumption in that designated area.
Stadium and attraction stalls
If you run a stall at a stadium or attraction, you can use the scheme, provided there is a designated area belonging to you for use by your customers.
Train and aircraft catering
You can use the scheme if the train has a specific area or dining carriage for dining. All other food and drink is excluded.
You cannot use the scheme on an aircraft as they do not have restaurant areas where food is bought and eaten.
Specific examples
Hotels with bed and breakfast
The scheme discount is only available to food and drink sold for immediate consumption on premises. This does not include food and drink that is sold as part of a wider accommodation service.
The scheme discount applies to food and drink sold separately to the bed and breakfast service.
Golf dinner services
The scheme discount is only available to food and drink sold for immediate consumption on premises. This does not include food and drink that is sold as part of a wider golf package.
The scheme discount applies to food and non alcoholic drink sold separately to the golf package.
Hospitality packages
The scheme discount is only available to food and drink sold for immediate consumption on premises. This does not include food and drink that is sold as part of a hospitality package.
The scheme discount applies to food and drink sold separately to the hospitality package at any event.
Catering services for weddings and events
You cannot use the scheme. The scheme discount is only available to food and drink sold for immediate consumption on premises. This does not include food and drink that is sold as part of a wider catering service.
Events, functions and private parties
If you are a restaurant and are selling food and drink as part of an event, function or private party, you cannot apply the scheme discount to food and drink that is sold as part of a package. You can however apply the discount to food and drink sold in the normal course of the restaurant business.
Canteen operators
The definition of an eligible establishment covers workplace and school canteens.
The scheme discount can then be applied to food and drink that is sold to employees or students for immediate consumption on premises. The scheme does not cover food and drink that is paid for by the owner of the premises and supplied to employees or students for free.
Offering the discount
Service charges
The service charge is not included in the scheme discount – the reduction only applies to spend on food and non-alcoholic drinks.
Other discounts
You can use the scheme alongside other offers and discounts you are offering.
To calculate the value of the transaction and make a claim to HMRC, you must first apply any special offers, vouchers or discount schemes you might be promoting or accepting and deduct any service charge.
You will only be reimbursed for the qualifying discounts you provide as part of the scheme.
If you do not want to offer a 50% discount
You cannot change the terms of the scheme. The discount you offer must be 50%, up to a maximum of £10 per diner
What counts as a ‘diner’
A diner is any person, adult or child, for whom food or drink is being purchased for consumption on premises. A diner does not need to be the paying customer.
What counts as an alcoholic drink
For the purposes of this scheme an alcoholic drink is a drink that contains more than 1.2% ABV (alcohol by volume).
Taking an order using an app
If you use an app for diners to order food or drink, you need to be able to determine how many diners are using the scheme at the time of purchase.
You should treat the order as being made by a single diner if the app is unable to establish the number of diners and you have no alternative arrangements to capture this information. The scheme discount would be capped at £10.
Applying the £10 per person cap to a single bill
Where there is more than one diner on a single bill, the cap does not need to be calculated for each individual diner based on their specific orders. Instead, the discount that is applied to the overall bill should be capped at the number of diners multiplied by £10.
Example of applying the cap to a £60 bill
A group of four diners (2 adults and 2 children) spend £60, including £10 on alcoholic beverages. There is a 10% service charge bringing the pre-discount bill to £66.
| Description | Price |
| Bill before service charge and discount | £60.00 |
| Service charge | £6.00 |
| Total bill | £66.00 |
| Amount spent on alcohol | £10.00 |
| Amount that discount can be applied to | £50.00 |
| Discount to customers (50% of 50) | £25.00 |
| Bill after discount is applied | £41.00 |
The total discount is £25, which is £6.25 per diner and is below the £10 per diner cap.
Example of applying the cap to a £100 bill
A group of four diners (2 adults and 2 children) spend £100, including £10 on alcoholic beverages. There is a 10% service charge bringing the pre-discount bill to £110.
| Description | Price |
| Bill before service charge and discount | £100.00 |
| Service charge | £10.00 |
| Total bill | £110.00 |
| Amount spent on alcohol | £10.00 |
| Amount that discount can be applied to | £90.00 |
| Uncapped discount to customers (50% of 90) | £45.00 |
| Capped discount (£10 per diner) | £40.00 |
| Bill after discount is applied | £70.00 |
The uncapped discount is £45, which is £11.25 per diner and is above the £10 per diner cap. The discount is therefore capped at £40.
Example of applying a discount without the £10 cap
One person dines at your establishment and the total bill is £4. No alcohol is purchased.
| Description | Price |
| Total Bill | £4 |
| Uncapped discount to customers (50% of 4) | £2 |
| Bill after discount is applied | £2 |
The £10 per diner cap does not apply to this claim.
Example of applying the discount to a £50 bill
A group of 4 diners have a bill of £50 which includes £8 on alcoholic beverages at your establishment. There is no service charge. This means that the scheme only applies to £42 of the overall bill.
| Description | Price |
| Bill before discount | £50 |
| Amount spent on alcohol | £8 |
| Amount that the discount can be applied to | £42 |
| Uncapped discount to customers (50% of 42) | £21 |
| Bill after discount is applied | £29 |
The £10 per diner cap does not apply to this claim.
Examples of how to calculate the discount
You will have to calculate the total amount of discount you’ve given under the Eat Out to Help Out Scheme in each of your establishments during the claim period.
A meal purchased without alcohol
One person dines at your establishment and the total bill is £4. No alcohol is purchased.
Applying the 50% discount to the £4 bill means that the diner pays you £2.
| Description | Price |
| Total Bill | £4 |
| Uncapped discount to customers (50% of 4) | £2 |
| Bill after discount is applied | £2 |
| The amount you can claim | £2 |
VAT will be due at 5% of the total undiscounted bill amount of £4.
A meal purchased with alcohol
A group of 4 diners have a bill of £50, which includes £8 on alcoholic drinks at your establishment. This means that the scheme only applies to £42 of the overall bill.
| Description | Price |
| Bill before discount | £50 |
| Amount spent on alcohol | £8 |
| Amount that the discount can be applied to | £42 |
| Uncapped discount to customers (50% of 42) | £21 |
| Bill after discount is applied | £29 |
| The amount you can claim | £21 |
The £10 per diner cap does not apply to this claim.
VAT will be due at 20% on the alcohol amount of £8, so applying the VAT fraction of 1/6 = £1.33.
VAT will be due at 5% on the full undiscounted amount of £42 for the rest of the meal, so applying the VAT fraction of 1/21 = £2.
If you offer your own discount
A group of 2 diners have a bill of £120, which includes £40 on alcoholic drinks at your establishment. Your establishment has its own 10% discount promotion on the entire bill (including alcohol), bringing the total to £108 (£72 on food and £36 on alcohol).
You must apply your discount before applying the Eat Out to Help Out discount.
| Description | Price |
| Bill before discount(s) | £120 |
| Other discount (10% of 120) | £12 |
| Bill after your discount | £108 |
| Amount spent on alcohol | £36 |
| Amount that the discount can be applied to | £72 |
| Capped discount (£10 per diner) | £20 |
| Bill after discount is applied | £88 |
| The amount you can claim | £20 |
VAT will be due at 20% on the alcohol amount of £36 (the amount after the restaurant’s own discount has been applied), so applying the VAT fraction of 1/6 = £6.
VAT will be due at 5% on the amount for the rest of the meal of £72, this amount includes the scheme discount, but not the restaurants own discount, so applying the VAT fraction of 1/21 = £3.43.
Where the £10 cap applies
A group of 6 diners have a bill of £300, which includes £100 on alcoholic beverages, plus an optional 10% service charge, for a total bill of £330.
| Description | Price |
| Bill before discount | £330 |
| Amount spent on alcohol | £100 |
| Service charge (10% of 300) | £30 |
| Amount that the discount can be applied to | £200 |
| Capped discount (£10 per diner) | £60 |
| Bill after discount is applied | £270 |
| The amount you can claim | £60 |
VAT will be due at 20% on the alcohol amount of £100, so applying the VAT fraction of 1/6 = £16.67. VAT Will be due at 5% on the undiscounted amount for the rest of the meal of £200, so applying the VAT fraction of 1/21 = £9.52.
Paying the service charge in this example is optional, so this is outside the scope of VAT, no VAT is due on this amount.
Meal bundle offers
One person has a bill of £10 which includes an alcoholic drink as part of a ‘buy a meal, get a drink free’ offer in your establishment.
The normal price of the alcoholic drink ordered as part of the offer is £4, so this is the amount of the price treated as being for the alcoholic drink. This means that the scheme only applies to £6 of the overall bill.
| Description | Price |
| Bill before discount | £10 |
| Amount spent on alcohol | £4 |
| Amount that the discount can be applied to | £6 |
| Bill after discount is applied | £7 |
| The amount you can claim | £3 |
The £10 per diner cap does not apply to this claim.
VAT will be due at 20% on the value of the alcoholic drink, which is £4, so applying the VAT fraction of 1/6 = 67p.
VAT will be due at 5% on the undiscounted amount for the rest of the meal of £6, so applying the VAT fraction of 1/21 = 29p.
Two meals for the price of one
A group of 2 diners take advantage of a ‘buy 2 meals for the price of one’ offer in your establishment. The offer results in the two meals being charged at the price of the most expensive.
You must apply any other discount before applying the Eat Out to Help Out Scheme.
One of the meals costs £10 the other £20, so the price charged for the two meals under your offer is £20.
| Description | Price |
| Bill before discount | £30 |
| Other discount (2 meals for the price of 1) | £20 |
| Amount the discount can be applied to | £20 |
| Uncapped discount to customers (50% of 20) | £10 |
| Bill after discount is applied | £10 |
| The amount you can claim | £10 |
Applying the 50% discount to the £20 means the diners pay £10. The amount you claim is £10. The £10 per diner cap does not apply to this claim.
VAT will be due at 5% on amount for the meal of £20, this amount includes the Scheme discount, but not the restaurants own discount, so applying the VAT fraction of 1/21 = 95p.
Once you’ve calculated how much you can claim, you can claim money back through the Eat Out to Help Out Scheme.
Contact, help and further support from HMRC
Get more information about the scheme
We are helping restaurants by providing:
- guidance on how to register on GOV.UK
- free live webinars which explain how the scheme works, provides examples and allows you to ask questions
- webchat service
- a dedicated helpline for restaurants
- guidance on how to make claim on gov.uk
- a YouTube video
Get promotional material to use in your establishment
You can download free assets to help you promote the scheme. We will also send restaurants who register a display sticker so people can see they are participating. The government will also promote the scheme using radio, media and advertising. Restaurants and establishments who have registered will be published on GOV.UK so the public can see who is taking part.
Using your own promotional material to advertise that you’re using the scheme
We know that restaurants have their own branding and client base. We welcome restaurants marketing the scheme themselves but would encourage you to use the campaign logo, which will be an important point of reference for the customer.