ANSWER: YES!
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Since there has been such arguments on here regarding the biscuit/cake argument I have decided to put it to bed once and for all.
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Another (sub)urban legend: Jaffa Cakes are cakes, as the name suggests and contrary to the claims of HM Customs and Excise, who argued that they were biscuits. This was not an exercise in pedantry but an attempt to levy VAT on them: cakes are `food' and zero rated, while biscuits are `luxury items', and attract 17.5% tax. (Note that the McVities Jaffa Cake web site calls them `biscuits' anyway....)
The matter was settled with this test:
a cake starts off soft and goes hard when it is stale, but a biscuit starts off hard and goes soft when stale. Jaffa Cakes harden when stale.
The matter was settled over ten years ago by a VAT tribunal in a very expensive case. McVities argued that they were indeed cakes (and hence zero-rated for VAT), while HM Customs and Excise argued that they were biscuits and hence subject to 17.5 per cent VAT. McVities won the case, primarily because biscuits are hard when fresh and soft when stale whereas cakes are soft when fresh and hard when stale; Jaffa Cakes, of course, fall into the latter category. I have a recollection that McVities also baked a cake-sized Jaffa Cake for the tribunal chairman to support their legal arguments.
The `when is a cake not a cake?' riddle was solved some years ago and related to Jaffa Cakes. A Jaffa Cake was found to be a cake, not a biscuit, and therefore outside the confectionery exception.
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Since there has been such arguments on here regarding the biscuit/cake argument I have decided to put it to bed once and for all.
------------------------------------------------------------------------------
Another (sub)urban legend: Jaffa Cakes are cakes, as the name suggests and contrary to the claims of HM Customs and Excise, who argued that they were biscuits. This was not an exercise in pedantry but an attempt to levy VAT on them: cakes are `food' and zero rated, while biscuits are `luxury items', and attract 17.5% tax. (Note that the McVities Jaffa Cake web site calls them `biscuits' anyway....)
The matter was settled with this test:
a cake starts off soft and goes hard when it is stale, but a biscuit starts off hard and goes soft when stale. Jaffa Cakes harden when stale.
The matter was settled over ten years ago by a VAT tribunal in a very expensive case. McVities argued that they were indeed cakes (and hence zero-rated for VAT), while HM Customs and Excise argued that they were biscuits and hence subject to 17.5 per cent VAT. McVities won the case, primarily because biscuits are hard when fresh and soft when stale whereas cakes are soft when fresh and hard when stale; Jaffa Cakes, of course, fall into the latter category. I have a recollection that McVities also baked a cake-sized Jaffa Cake for the tribunal chairman to support their legal arguments.
The `when is a cake not a cake?' riddle was solved some years ago and related to Jaffa Cakes. A Jaffa Cake was found to be a cake, not a biscuit, and therefore outside the confectionery exception.
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Last edited:
OK.
