Biscuit or Cake?
 

BBC NEWS | World | Europe | Teacake set to cost taxman £3.5m

The VAT man owes M&S £3.5 million because they classed teacakes as biscuits and not cakes!!! But the thing is the customers bought the teacakes the customers paid the VAT on them - so why give it back to M&S when it was the customers who paid it. If they do i hope m&s give it back to the customers somehow discounts on stuff etc

By the way would you class a chocolate teacake as a cake or a biscuit?

Re: Biscuit or Cake?
 

Erm... biscuit - they were biscuit and mallow last time i got them - or am i thinking of something different

Re: Biscuit or Cake?
 

I think the answer to this is to leave one out on the kitchen worktop for a couple of days.

I believe that if it goes soft it's a biscuit.

If it goes hard and dry it's a cake. :)

Re: Biscuit or Cake?
 

the way i would judge it is if its a gobfull its a biscuit, if more its cake.:D

Re: Biscuit or Cake?
 

Jaffa cakes go hard so I class them as a cake.

A jaffa cake is only one gobfull though. ;)

Re: Biscuit or Cake?
 

I don't care if a chocolate teacake's a biscuit or a cake, I just eat it. Mmmmmm. :)

Re: Biscuit or Cake?
 

Jaffa cakes definitely a cake Lilly. An ex-girlfriend of my sons once got asked this in an interview :confused: She is a physiotherapist ! .. LOL. Luckily, her father worked for McVities and was able to give the correct answer.

Choc. Teacakes .. yes .. would say a cake.

Don't really eat biscuits or cake so can't do a test.

Re: Biscuit or Cake?
 

It would be good if M&S donated the returned VAT to charities......it would then be able to do some good.

Re: Biscuit or Cake?
 

This is from that link

Re: Biscuit or Cake?
 

I would say that its a biscuit, when i buy them they are always with the biscuits and not on the cake aisle

Re: Biscuit or Cake?
 

All sounds a little Lilliputian to me:D:confused::D

Re: Biscuit or Cake?
 

Well, that's logical reasoning I suppose .... :D:D

Does anybody know the reason for one being taxed and not the other ?

Is cake thought of as more of a necessity or something ? Usually have the same types of ingredients ... :confused:

Re: Biscuit or Cake?
 

You'd have to ask that of the Minster responsible for this matter, Marie Antoinette.:D

Re: Biscuit or Cake?
 

HMRC would have to refund M&S the VAT because it was charged on their turnover figure. The consumer is only paying the RRP and wouldn`t be able to claim the VAT back as they are not VAT registered. It does mean that M&S has made an extra amount of profit, which of course they will have to add to their turnover figure on which they will be charged corporation tax. VAT is taxed at 17.5% and corporation tax is 28%, so the winners are......:eek:

Re: Biscuit or Cake?