Marks & Spencer’s new strawberry and cream sandwich has captured attention on social media — but now it’s caught the eye of tax experts, too.
Marketed as a sweet take on the viral Japanese strawberry sando, M&S’s half-sandwich — part of its meal deal range — is prompting questions over whether it should be classified as a standard sandwich (zero-rated for VAT) or as a confectionery item (subject to 20 per cent VAT).
Wrapped in typical savoury packaging, the new snack consists of sweetened bread and a generous helping of strawberries and cream, mimicking the Japanese original made with soft milk bread. While shoppers are debating the flavour, accountants and barristers are debating its tax status.
“If the bread is sweetened and designed to be eaten with fingers, the case for classifying it as confectionery is surprisingly strong,” said Simon Knivett, VAT manager at HW Fisher. That would make the item subject to VAT under a 1988 change aimed at catching cereal bars and other “sweetened prepared foods”.
The legal uncertainty echoes the now-legendary VAT ruling on Jaffa Cakes, which saw McVitie’s successfully argue the treat was a cake — and therefore zero-rated — not a biscuit. Another similar case is currently unfolding over whether “mega marshmallows” should be taxed as confectionery, with London-based wholesaler Innovative Bites challenging HMRC’s decision to apply the full VAT rate.
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