When is a snowball a cake? Or a biscuit?
Jun 28th, 2014, 01:06 PM
#1
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When is a snowball a cake? Or a biscuit?
<i>Two Lanarkshire-based confectionery firms are set to receive a windfall tax rebate after judges ruled Snowball snacks were technically cakes.......
Judges at the First-tier tax tribunal ruled in their favour on appeal.
They decided the issue after being presented with a plate of Jaffa Cakes, Bakewell tarts, tea cakes, Lees Snowballs, Waitrose meringues and mini jam snow cakes during the hearing. </i>
Nice work if you can get it.
http://www.bbc.co.uk/news/uk-scotlan...iness-28055633
Judges at the First-tier tax tribunal ruled in their favour on appeal.
They decided the issue after being presented with a plate of Jaffa Cakes, Bakewell tarts, tea cakes, Lees Snowballs, Waitrose meringues and mini jam snow cakes during the hearing. </i>
Nice work if you can get it.
http://www.bbc.co.uk/news/uk-scotlan...iness-28055633
Jun 28th, 2014, 04:11 PM
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Jun 28th, 2014, 05:26 PM
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I don't get why some foods are taxed and some not.
Here only cooked or prepared foods (as in buying a prepared sandwich in a deli) is taxed (as is food in restaurants). Food in the natural state (bread, ham and cheese FOR a sandwich) is tax free.
Here only cooked or prepared foods (as in buying a prepared sandwich in a deli) is taxed (as is food in restaurants). Food in the natural state (bread, ham and cheese FOR a sandwich) is tax free.
Jun 28th, 2014, 06:04 PM
#7
nyt:
The NY state tax rues are not <i>quite</i> as simple as that.
From the Dept of Taxation and Finance website:
>>When the food and drink is sold by a restaurant to-go, it is taxable unless:
the food (other than sandwiches) or drink is being sold unheated, and
it is being sold in the same way (in the same form, condition, quantities, and packaging) you would normally find it in a supermarket or grocery store.
Example: A customer comes into your deli and orders a sandwich to go. In addition to the sandwich, the customer purchases a bottle of soda and a bag of pretzels. In this sale, the sandwich and the soda would both be subject to sales tax. You do not have to collect sales tax on the bag of pretzels because it is sold in the same form, condition, quantity, and packaging as it would normally be sold at a grocery store.
Example: Three customers enter a bagel shop. Customer #1 orders a dozen bagels to go. The employee puts the bagels in a bag and the customer proceeds to the checkout. The sale of a dozen bagels for off-premises consumption is not taxable.
Customer #2 orders a plain bagel and a cup of coffee to eat at one of the tables located within the bagel shop. The sale of the bagel and coffee is taxable because the sale is made for on-premises consumption.
Customer #3 orders a toasted bagel with cream cheese and a cup of iced coffee to go. The bagel is prepared as ordered and put into a bag for the customer. The coffee is poured into a cup and topped with a lid. Both the coffee and the bagel are taxable as restaurant food even though the food and beverage will not be consumed within the bagel shop.<<
Blokes don't corner the market on bureaucracy.
The NY state tax rues are not <i>quite</i> as simple as that.
From the Dept of Taxation and Finance website:
>>When the food and drink is sold by a restaurant to-go, it is taxable unless:
the food (other than sandwiches) or drink is being sold unheated, and
it is being sold in the same way (in the same form, condition, quantities, and packaging) you would normally find it in a supermarket or grocery store.
Example: A customer comes into your deli and orders a sandwich to go. In addition to the sandwich, the customer purchases a bottle of soda and a bag of pretzels. In this sale, the sandwich and the soda would both be subject to sales tax. You do not have to collect sales tax on the bag of pretzels because it is sold in the same form, condition, quantity, and packaging as it would normally be sold at a grocery store.
Example: Three customers enter a bagel shop. Customer #1 orders a dozen bagels to go. The employee puts the bagels in a bag and the customer proceeds to the checkout. The sale of a dozen bagels for off-premises consumption is not taxable.
Customer #2 orders a plain bagel and a cup of coffee to eat at one of the tables located within the bagel shop. The sale of the bagel and coffee is taxable because the sale is made for on-premises consumption.
Customer #3 orders a toasted bagel with cream cheese and a cup of iced coffee to go. The bagel is prepared as ordered and put into a bag for the customer. The coffee is poured into a cup and topped with a lid. Both the coffee and the bagel are taxable as restaurant food even though the food and beverage will not be consumed within the bagel shop.<<
Blokes don't corner the market on bureaucracy.
Jun 28th, 2014, 06:23 PM
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From Lee's website (my emphasis added):
<i>Snowballs have been a favourite with adults and children for many years. <b>Soft fluffy [marsh]mallow</b> with a chocolate coating and sprinkled with the finest flakes of coconut to create a delicious sweet treat.</i>
That they are gluten free is also telling. No actual cake was involved in the making of these snowballs!
<i>Snowballs have been a favourite with adults and children for many years. <b>Soft fluffy [marsh]mallow</b> with a chocolate coating and sprinkled with the finest flakes of coconut to create a delicious sweet treat.</i>
That they are gluten free is also telling. No actual cake was involved in the making of these snowballs!
Jun 28th, 2014, 06:47 PM
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nytraveler,
I think, although it is just my guess, that prepared foods are taxed, whereas "non-prepared" foods are not, because the former are a bit of a "luxury" while the latter are necessities. In most states (at least those with state sales taxes) at least some "junk" foods (soda, candy, cookies, chips, etc.—exactly what varies by state) are taxed, even in grocery stores, whereas things like fruit, vegetables, meat, bread, milk, etc., are less likely to be.
However, some states DO tax all foodstuffs. Alabama is one—even the most basic food items get hit with the 10% state sales tax.
A similar situation exists with clothing in the New England states (and at least some others, NY included). Most clothing priced less than a certain amount is not taxed.
But there are some funny exceptions. In MA, according to the Department of Revenue, "While apparel designed solely for athletic or protective use is taxable, items that are also suitable for everyday use are exempt." Thus, according to their (or the legislature's?) logic, athletic supporters and "uniforms: athletic (baseball, football, etc.)" are taxable, but jogging bras, ski pants, bathing suits, "gym uniforms", "tennis clothing", and "uniforms: band; camping; fire; nurse; police; waiter/waitress" are not. Go figure.
I think, although it is just my guess, that prepared foods are taxed, whereas "non-prepared" foods are not, because the former are a bit of a "luxury" while the latter are necessities. In most states (at least those with state sales taxes) at least some "junk" foods (soda, candy, cookies, chips, etc.—exactly what varies by state) are taxed, even in grocery stores, whereas things like fruit, vegetables, meat, bread, milk, etc., are less likely to be.
However, some states DO tax all foodstuffs. Alabama is one—even the most basic food items get hit with the 10% state sales tax.
A similar situation exists with clothing in the New England states (and at least some others, NY included). Most clothing priced less than a certain amount is not taxed.
But there are some funny exceptions. In MA, according to the Department of Revenue, "While apparel designed solely for athletic or protective use is taxable, items that are also suitable for everyday use are exempt." Thus, according to their (or the legislature's?) logic, athletic supporters and "uniforms: athletic (baseball, football, etc.)" are taxable, but jogging bras, ski pants, bathing suits, "gym uniforms", "tennis clothing", and "uniforms: band; camping; fire; nurse; police; waiter/waitress" are not. Go figure.
Jun 29th, 2014, 12:10 AM
#15
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>>Surely the chocolate marshmallow thing is a teacake. I thought that snowballs were small cakes dipped in coconut.<<
Ah, but these are chocolate marshmallows dipped in coconut.
But if they were deep-fried, they would presumably not be lable for VAT as they would be for consumption off the premises (indeed, away from the public gaze, one would hope).
Ah, but these are chocolate marshmallows dipped in coconut.
But if they were deep-fried, they would presumably not be lable for VAT as they would be for consumption off the premises (indeed, away from the public gaze, one would hope).
Jun 29th, 2014, 03:04 AM
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The test was would you include them in a plate of hobnobs and ginger nuts to dunk in coffee, or a plate of fondant fancies and battenburg for afternoon tea? You can't dunk a snowball (or a teacake), so they're not biscuits.
Jun 29th, 2014, 03:46 AM
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Scottish husband insists that those are not snowballs. Mind you if you Google them, there are umpteen recipes.
I thought that the rule was concerned with ageing. If it's a cake, it goes hard when it's getting old. If it's a biscuit, it goes soft.
I'm always amused that trip report after trip report talks about delicious meals they've had in the UK and you still get people saying how horrible British food is.
I thought that the rule was concerned with ageing. If it's a cake, it goes hard when it's getting old. If it's a biscuit, it goes soft.
I'm always amused that trip report after trip report talks about delicious meals they've had in the UK and you still get people saying how horrible British food is.
