Biscuit or Cake?

shillelagh · 10-04-2008, 21:38

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?

emzy · 10-04-2008, 21:41

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

Lilly · 10-04-2008, 21:43

Quote:

Originally Posted by shillelagh

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

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.

cashman · 10-04-2008, 21:44

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

Lilly · 10-04-2008, 21:46

Quote:

Originally Posted by cashman

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

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

A jaffa cake is only one gobfull though.

West Ender · 10-04-2008, 21:50

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

katex · 10-04-2008, 21:57

Quote:

Originally Posted by Lilly

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

A jaffa cake is only one gobfull though.

Jaffa cakes definitely a cake Lilly. An ex-girlfriend of my sons once got asked this in an interview

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.

Margaret Pilkington · 11-04-2008, 12:10

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

Neil · 11-04-2008, 16:42

Quote:

Originally Posted by Lilly

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

A jaffa cake is only one gobfull though.

This is from that link

Quote:

Under UK tax rules, most traditional bakery products such as bread, cakes, flapjacks and Jaffa Cakes are free of VAT, but the tax is payable on cereal bars, shortbread and partly-coated or wholly-coated biscuits.

jackyalex · 11-04-2008, 16:43

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

Eric · 11-04-2008, 16:59

All sounds a little Lilliputian to me

katex · 11-04-2008, 17:02

Quote:

Originally Posted by jackyalex

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

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

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 ...

garinda · 11-04-2008, 18:25

Quote:

Originally Posted by katex

Is cake thought of as more of a necessity or something ?

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

Uncle Mick · 11-04-2008, 19:01

Quote:

Originally Posted by shillelagh

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.

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......

WillowTheWhisp · 11-04-2008, 19:05

But were M&S charging VAT to their customers?