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Author Topic: An important tax issue  (Read 3496 times)
TightEnd
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« on: December 13, 2007, 12:58:19 PM »

Jaffa cakes..cake or biscuit?

biscuits are subject to VAT and cakes are not.

this is crucial, and I wanted your opinion

After a ten year court battle Marks and Spencer can recover £2.5m in VAT as the European courts have ruled that Jaffa cakes (and the generic class of chocolate teacakes) are cakes not biscuits

Regards


your food correspondent
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TheChipPrince
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« Reply #1 on: December 13, 2007, 01:00:03 PM »

Get.Out.More.
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« Reply #2 on: December 13, 2007, 01:00:34 PM »

Jaffa cakes..cake or biscuit?

biscuits are subject to VAT and cakes are not.

this is crucial, and I wanted your opinion

After a ten year court battle Marks and Spencer can recover £2.5m in VAT as the European courts have ruled that Jaffa cakes (and the generic class of chocolate teacakes) are cakes not biscuits

Regards


your food correspondent

Clue pretty much in the title there..Cake! (also for the scientific reason as to why they are cakes...)
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MKKfish
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« Reply #3 on: December 13, 2007, 01:28:16 PM »

er...is this a level... this was a case study when I did taxation a zillion years ago.

Basically Biccies & Cakes are zero rated as they are deemed 'neccesities'..(go figure).

However, chocolate covered biccies are not considered as such and are standard rated.

Tribunal ruled that they were miniture cakes rather than biccies so were exempt.

Pretty sure if you google you will find the full ruling.
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« Reply #4 on: December 13, 2007, 01:30:38 PM »

its easy to trell the difference between a cake and a biscuit.

A cake when stale goes hard.

and a biscuit when stale goes soft.

a Jaffa cake goes hard when stale, hence its a cake.

Easy solution that would have saved a lot of money.
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« Reply #5 on: December 13, 2007, 01:33:12 PM »

I appear to have a biscuit between my legs...
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steeveg
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« Reply #6 on: December 13, 2007, 01:37:05 PM »

Get.Out.More.
lol,
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barhell
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« Reply #7 on: December 13, 2007, 01:41:25 PM »

its easy to trell the difference between a cake and a biscuit.

A cake when stale goes hard.

and a biscuit when stale goes soft.

a Jaffa cake goes hard when stale, hence its a cake.

Easy solution that would have saved a lot of money.
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Graham C
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« Reply #8 on: December 13, 2007, 02:36:28 PM »

mmmm jaffa cakes
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AndrewT
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« Reply #9 on: December 13, 2007, 02:46:36 PM »

As long as the ruling doesn't affect crackers, I'm sure Blonde's cracker correspondent will be happy.

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« Reply #10 on: December 13, 2007, 02:55:41 PM »

its easy to trell the difference between a cake and a biscuit.

A cake when stale goes hard.

and a biscuit when stale goes soft.

a Jaffa cake goes hard when stale, hence its a cake.

Easy solution that would have saved a lot of money.

Yup this is arguement I always use in this important issue.
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JungleCat03
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« Reply #11 on: December 13, 2007, 02:59:57 PM »



Mcvities won a court case defining Jaffa Cakes as cakes a while ago ( there's some sort of tax breaks on cakes as opposed to biscuits i think). The case hinged on the fact that jaffa cakes as with normal cakes go harder as the go off, as opposed to biscuits which go softer.

So legally speaking at least, jaffa cakes ARE cakes.

Interesting stuff huh! (errrrr......)

If this news was a biscuit it would be soft! (but it's a cake so it's hard)
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« Reply #12 on: December 13, 2007, 03:19:02 PM »

As long as the ruling doesn't affect crackers, I'm sure Blonde's cracker correspondent will be happy.



    He looks so happy bless Cheesy
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TightEnd
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« Reply #13 on: December 13, 2007, 03:22:09 PM »

xxLOJxx's Snowdonia Cheese (he works for them) and a tub of crackers

Sigh, happy memories
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cia260895
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« Reply #14 on: December 13, 2007, 05:10:40 PM »

full moon half moon total eclipse
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