14 Nov '12 17:57>1 edit
Originally posted by googlefudgeTut, tut.
It's sad.... because you have to pay VAT on cakes but not biscuits...
Which is why they had the lawsuit.
Cakes are zero-rated, which is the best of all worlds as the customer does not pay VAT but the manufacturer can reclaim it on ingredients etc.
Chocolate covered biscuits (the chocolate is important) are standard-rated.
McVities took the case and won.
Whatever are they teaching you lot at schools these days?
😉
p.s. nice to see taxpayers money being used to support a court system to argue about matters of such weight......