£3.5m Teacake tax bill

[usxhe190]

The government (as in MPs and the house of commons) don't get involved. There is no legislation or listening to arguments. It is all down Customs & Excise (or whatever they are called these days). They make the descision and usually, thats the end of it.

I would have assumed the government made VAT legislation where biscuits and cakes were charged differently, and that is why everyone needs departments to argument about this.

[Funkstar]

I would have assumed the government made VAT legislation where biscuits and cakes were charged differently, and that is why everyone needs departments to argument about this.

Yes, probably right, and that will have been discussed years ago, probably when VAT was intruduced. The diferentiation has something to do with cakes being a basic food stuff and biscuits not. Or something like that.

But then it's up the the Tax Man to decide what is a biscuit and what is a cake.

[Agent]

This was a triumph!
I'm making a note here:
"HUGE SUCCESS!!"

It's hard to overstate
my satisfaction.

[Sinizter]

The tax lot should definitely not keep this money, but then why should M&S get it when all the charges have been passed on to the customer ?

They should donate the money to some mutually agreed cause/charity or something ... I just dont think either of them are entitled to keep it. Maybe they should just split it and thats the end of it.

[GoNz0]

i wonder if m&s will drop the price by 17.5%.. doubt it..

ad hell yeh m&s should get all the vat back and then donate it to charity !

[dave87]

I highly doubt if it was given to M&S it would be entirely sent to a charity. I'm sure the shareholders wouldn't agree to that.

[usxhe190]

Yes, probably right, and that will have been discussed years ago, probably when VAT was intruduced. The diferentiation has something to do with cakes being a basic food stuff and biscuits not. Or something like that.

But then it's up the the Tax Man to decide what is a biscuit and what is a cake.

I guess that's my point. The legislation made such differences and due to these there is now increased administation by the governments, the manufacturers and the consumers to decide whether this is a biscuit or cake.

That is why everything is so inefficient and cost so much to do something. Maybe the government were trying to have the best intentions. But their execution is pretty stupid.

[mediaboy]

It's more like 20% of the total price they have to drop (to remove 17.5% VAT)

I think it's more likely that the government will suddenly charge VAT on teacakes to avoid this happening again....

[Sinizter]

It's more like 20% of the total price they have to drop (to remove 17.5% VAT)

I think it's more likely that the government will suddenly charge VAT on teacakes to avoid this happening again....

That would work out more cost efficiently for them if they could make it effective retrospectively. But since they cant, it would just be plain stupid.

[mediaboy]

ok.. the customs and excise (or whatever they are called) will decide that cakes are now items worthy of VAT status, and as such will increase in price by 17.5% and 2.75% inflation (the current official rate.)

similar to all maths when speaking in terms of inflation, I would say that the price of teacakes will approximately double in the next two years. Like everything else has.

Of course, it won't change anything in this case, so I guess that they'll hand over the money and M&S will offer VAT refunds to anyone with a receit (or however it is that you spell it.)

I'm sure we've all got the last 20 years of receipts so let's go and collect our 10p worth of VAT that we're owed.

[Lucio]

This was a triumph!
I'm making a note here:
"HUGE SUCCESS!!"

It's hard to overstate
my satisfaction.

You're a bad bad man who owes me for the cost of cleaning my keyboard!

[Zak33]

Hands up anyone who bought M&S teacakes in the last twenty years.

Keeps your hands up if you kept a reciept...

me....err...us.....

Christ on a Bike, no one will ever believe me....but this happened three weeks ago
We popped into Tring, dropped into M&S for custard and cookies (good custard, great cookies) and Sair said "ooh.....teacakes...special offer....not had for ages......blah...blah..." and we got a pack.

I argued all the way home that these were more like sweets, more like buscuits....and NO CAKE was involved.

And here.... i hate to admit I have the receipt.

/gets M&S Goat.... (wouldn't buy an M&S Coat)

[sammyc]

ok.. the customs and excise (or whatever they are called) will decide that cakes are now items worthy of VAT status, and as such will increase in price by 17.5% and 2.75% inflation (the current official rate.)

maybe they will make some sort of special mallowance in this case.

[TAKTAK]

maybe they will make some sort of special mallowance in this case.

now that is corny

[Agent]

You're a bad bad man who owes me for the cost of cleaning my keyboard!

Sorry. Couldn't resist.

That and I only completed it a few weeks back....meaning I still have the Portal bug in my system (which includes using the theme as my ringtone)