VAT reduction for catering and takeaway food

Clarification issued by the UK Government confirms that takeaway food will be included in the temporary VAT reduction announced on 8th July 2020.

The temporary 5% rate will apply between 15th July 2020 and 12th January 2021, in relation to food that is currently subject to standard VAT, produced ‘in the course of catering’. This includes:

  • hot and cold food for consumption on the premises on which they are supplied
  • hot and cold non-alcoholic beverages for consumption on the premises on which they are supplied
  • hot takeaway food for consumption off the premises on which they are supplied
  • hot takeaway non-alcoholic beverages for consumption off the premises on which they are supplied

The VAT reduction does not apply to alcoholic drinks, or to food that is not produced in the course of catering, including:

  • retail supplies of cold takeaway food
  • retail supplies of groceries
  • supplies of food that require significant further preparation by the customer

The Gov.UK website contains further information about standard-rated and zero-rated food, as well as further details about the temporary VAT reduction.

Important Links

For more information regarding temporary VAT reduction for food businesses, click here

For more information regarding VAT rating for food businesses, click here

For more information regarding the NHS Test and Trace scheme, click here

For more information from the Government about the role of your business in Test and Trace, click here

For more information from the ICO about keeping Test and Trace data safe, click here

Guidance for food businesses on coronavirus (COVID-19)

Reopening and adapting your food business during COVID-19

Food Hygiene and Health & Safety courses offered by the Safer Food Group

FSA launch Allergy Alert service

The Food Standards Agency has launched a great new service, useful to both food businesses and customers. Their #AllergyAlert tool enables you to choose specific notifiable allergens, and receive an email or text alert when a product is recalled or poses an allergy risk.

We suggest that all food businesses sign up to this service to keep themselves aware of any products containing undeclared allergens and do their best to keep their food safe for customers.

Restarting a food business after a temporary shutdown

A quick internet search will reveal a whole raft of information and advice regarding food business operations during and after the pandemic. This checklist, written by the brilliant team at the Institute of Food Science and Technology, is the most comprehensive and easy to follow list we’ve found.

Restart checklist

Important Links

The IFST Knowledge Hub contains a lot of great resources to consolidate advice, practical guidance and links to resources to support individuals, smaller food businesses and larger food operations

IFST Covid-19 Knowledge Hub

I want to start food deliveries – do I need a license, or special car insurance?

To deliver prepared food / meals to customers, you need to be registered as a food business, via your local authority. If you run an existing food business and want to start delivering food orders, you need to consider any new or different risks posed by this change. You will need to work through your Food Safety Management System* to make sure any food you sell in this way remains safe to eat.

Planning rules were relaxed on 17 March 2020 to allow pubs and restaurants to operate for 12 months as hot food and drinks takeaways during the coronavirus outbreak. However, businesses that do this must tell their local authority when the new use begins and ends.

The Association of British insurers have confirmed that if you are using your personal vehicle to deliver groceries or other essential goods to people, as long as you are not including a delivery charge, you do not need to update your insurance cover.  If you are charging for deliveries, you should contact your insurance provider/ broker to check if they can extend your vehicle insurance to cover home delivery.

*Your Food Safety Management System, sometimes referred to as HACCP, is the system you create that considers the safety risk of every element of your food operation and puts measures in place to eliminate or minimise those risks. See TSFG’s Level 2 HACCP course for more details.

Can I train while on furlough?

We know how frustrating it can be. For some staff, the first weeks on the Job Retention Scheme felt like a welcomed break from busy lives. But now you’re keen to get back to work and thinking of ways to ease you back into your job. Renewing your food hygiene certificate, or even increasing your skills and knowledge with a Level 3 award feels like a great way of making the most of your time and showing your employer how much you’ve missed them!

But are you allowed to undertake a training course if you are furloughed? And is your employer allowed to ask you to train during your time away from the office? In most cases – YES! Your employer can ask you to undertake training related to your work, as long as you are not making money for your employer or providing services to your employer.  If your employer has asked you to train then you must be paid at least the National Minimum Wage / National Living Wage (or the equivalent apprentice wage) during the training, even if this is more than your 80% subsidised rate of pay during furlough. 

Of course, you are allowed to take courses that you choose and pay for yourself during this time – at The Safer Food Group, we have found a lot of our learners have chosen to take our Nutrition course during time off. There have been some great deals available for training courses during the pandemic, and it’s a good time to concentrate on learning that new skill or hobby that you’ve just never found time to do. BUT – do be cautious of signing up to courses that advertise themselves as free. Choose reputable suppliers, such as FutureLearn and OpenLearn, who are very clear about their genuinely free courses. Many others come with small print that reveal you become liable for fees after 4 weeks, or require you to pay back the cost of the course if you do not complete it. If in doubt, don’t be afraid to ask for clarification of terms and conditions in writing before you sign up.