Hot Food Tax 20%

[Bluenite]

Looking on the BBC website it says the Government is going to put a 20%VAT on hot food . How desperate is the government for cash.

http://www.bbc.co.uk/news/uk-england-cornwall-17473688

I don't mind the 37p on cigs (now i've quit smoking) but adding a 20% onto hot food is just plain wrong.

 

[swee'pea99]

Think how much junk food obesity is costing the NHS...

 

[Bluenite]

It's not just junk food that will be taxed. I like my Tesco chicken and i like my soups all of those will get taxed.

 

[Mad Doug Biker]

What about bread and the likes?? That can be hot in the form of toast!

 

[vernon]

I have no objection.

It was always intended that hot food should have VAT added.

Devious companies claimed a whole range of reasons for the food having to be served hot including, improvements in flavour, improvements in appearance, improvements in smell.

The government has simply closed a loophole and companies, led by the purveyor of cholesterol and obesity, Greggs, are spearheading a campaign to have the loophole reopened as they stand to lose a lot of money.

The imposition of VAT on the dodgers has simply levelled the playing field in the hot food market.

 

[Norm]

It was always intended that hot food should have VAT added.

Indeed it was, there have been changes to this since VAT first appeared - many may remember there used to be different prices for eating in and take-away because of the different VAT treatment.

 

[Archie_tect]

Is VAT already charged on Indian and Chinese takaways?

[Edit: I googled the HMRC website]
4. Hot take-away food and drink

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4.1 What is the liability of take-away food and drink?

Hot take-away food that has been heated for the purposes of supplying it hot is always standard-rated. Cold take-away food and drink is zero-rated, provided it is not of a type that is always standard-rated (such as crisps, sweets, beverages and bottled water).Hot drinks are standard rated. Further information can be found in Notice 701/14 Food.

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4.2 What is take-away food and drink?

Take-away food is food sold for consumption off premises. Section 3explains what we mean by ‘premises’.

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4.3 What does ‘hot’ mean?

Hot in this context means above the surrounding air temperature.
Examples of standard-rated sales when sold hot are:

• fish and chips, chicken and chips
• chips
• Chinese, Indian, Greek, Italian and any similar take-away meals and dishes
• baked potatoes with a hot or cold filling
• hot dogs and hamburgers
• pies, rolls, sausage rolls, pasties and similar items (if sold ‘freshly cooked’ see paragraph 4.4)
• toasted sandwiches
• cups of tea, coffee, chocolate and other hot drinks
• cups of soup
• roasted chestnuts

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4.4 What about freshly cooked products?

If you sell freshly cooked products for consumption while they are still hot they are standard-rated, see paragraph 4.5.
Some of these products are, however, not sold with such an intention They may only be hot/warm as they are in the process of cooling down. Examples include pies, pasties, sausage rolls and similar savoury products, cooked chickens or joints of meat, bread products and croissants. The liability will depend, therefore, on how you prepare and sell them.

 

[Paulus]

I believe there is, as Norm said, once apon a time many years back there was no VAT on take away food, so Chinese and Indian resturants had an eat in, and a separate takeaway menu. The Tory goverment pre 1997 closed that particular loop hole.

 

[accountantpete]

Is VAT already charged on Indian and Chinese takaways?

I think I am right in saying that all hot takeaway food is standard rated - it's just that the Supermarkets claimed that their hot products were not for immediate consumption and that heating them up was part of the selling process.

 

[Norm]

I believe there is, as Norm said, once apon a time many years back there was no VAT on take away food, so Chinese and Indian resturants had an eat in, and a separate takeaway menu. The Tory goverment pre 1997 closed that particular loop hole.

You're posher than me! I was thinking of the McDonalds price list.

 

[Fab Foodie]

How desperate is the government for cash.

If you didn't know, it's F'in desperate for cash, rather like much of Europe, do please keep up at the back