Is the Sweet Treat a Confectionery or Traditional Sandwich?

  • M&S faces potential court battle over VAT on viral strawberry sandwich
  • Debate on whether it should be classified as confectionery or traditional sandwich
  • Rising popularity and professional debate could lead to HMRC review
  • Social media users comment on possible legal action against M&S

Marks & Spencer’s (M&S) new strawberry and cream sandwich, inspired by the Japanese sando, has become a social media sensation. The £2.80 item is available in their meal deal range and features sweetened bread with a strawberries-and-cream filling. While traditional sandwiches are zero-rated for VAT, its sweetened ingredients have sparked debate on whether it should be classified as confectionery, subject to the standard 20% VAT rate. The sandwich’s popularity and professional discussion may lead to a HMRC review. Simon Knivett, VAT manager at HW Fisher, mentioned that the product could fall under a 1980s legislative amendment for ‘sweetened prepared foods eaten with fingers,’ potentially triggering VAT liability. This follows previous VAT rulings like the Jaffa Cake case and ongoing legal challenges over mega marshmallows, highlighting the complexity in applying VAT rules to food products. M&S has not confirmed if they are charging 20% VAT on the sandwich. Social media users have commented on HMRC possibly taking M&S to court.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the debate surrounding M&S’s new strawberry and cream sandwich and its potential VAT classification, citing expert opinions and mentioning previous cases related to similar issues. It also includes social media reactions to the situation. However, it contains a brief unrelated sentence at the end that is not directly connected to the main topic.
Noise Level: 3
Noise Justification: The article provides relevant information about a current debate on VAT classification for a specific product and its potential legal implications, but it also includes some irrelevant social media comments that do not add much value to the overall discussion.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses VAT implications for a new sandwich product by M&S, which is related to financial topics as it involves taxation and potential impact on the company’s revenue. However, there is no direct mention of any specific financial markets being impacted.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event in the text.

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