Subway - Tax on hot sandwiches???

Subway - Tax on hot sandwiches???

Author
Discussion

3sixty

Original Poster:

2,963 posts

200 months

Tuesday 24th June 2008
quotequote all
Just been to subway for my lunch, the sub of the day was usually £1.99 for 6 inch. Walked in there today and its now £2.19. Its 20p, I didnt think much of it, but asked the guy as a bit of general conversation why the price increase. Was expecting the 'price of fuel' point, but he goes on to say there is a tax on hot sandwiches and eating in, so the price has increased.

Firstly, I dont believe him in the slightest, and found it rather funny. But just to satisfy my mind, is this true? I wouldnt be surprised if there was a tax on it. Fair play to the guy though, if there isnt a tax and made it up, he'd probably be able to convince a few people out there

Eric Mc

122,058 posts

266 months

Tuesday 24th June 2008
quotequote all
VAT is charged on "hot prepared food". Has always been the case.

308mate

13,757 posts

223 months

Tuesday 24th June 2008
quotequote all
Eric Mc said:
VAT is charged on "hot prepared food". Has always been the case.
Which means he got off lightly?

1.99 + 17.5% = 2.33

scratchchin

Get a receipt and claim it.

russ_a

4,585 posts

212 months

Tuesday 24th June 2008
quotequote all
it's the same in McDonalds, Plus you get charged VAT on Milkshakes if you eat in.

3sixty

Original Poster:

2,963 posts

200 months

Tuesday 24th June 2008
quotequote all
Well I'll be damned.

thirteen-o-two

434 posts

196 months

Tuesday 24th June 2008
quotequote all
Subway, McDonalds, food...??

Are these restuarants??? wink

Eric Mc

122,058 posts

266 months

Tuesday 24th June 2008
quotequote all
For VAT purposes, they are.

Conian

8,030 posts

202 months

Tuesday 24th June 2008
quotequote all
Say you want to take it away.
Then sit at a table eating the evidence before the tax man gets you smile

brickwall

5,250 posts

211 months

Tuesday 24th June 2008
quotequote all
Pret explain it very well.

Eating in gets classed as a restaurant, and is therefore VAT-able. Eating out is classed as buying food, which, (most of the time) is not VAT-able.

Engineer1

10,486 posts

210 months

Tuesday 24th June 2008
quotequote all
Conian said:
Say you want to take it away.
Then sit at a table eating the evidence before the tax man gets you smile
The price remains the same the money goes into proift not VAT or it pays for the delivery costs on takeaway.

puffpuff

20,984 posts

227 months

Tuesday 24th June 2008
quotequote all
Eric Mc said:
VAT is charged on "hot prepared food". Has always been the case.
Also, a licence is required for selling food 'at above ambient temperature', i.e. toasted sarnies.

Daft, isn't it?

rich1231

17,331 posts

261 months

Tuesday 24th June 2008
quotequote all
308mate said:
Eric Mc said:
VAT is charged on "hot prepared food". Has always been the case.
Which means he got off lightly?

1.99 + 17.5% = 2.33

scratchchin

Get a receipt and claim it.
VAT at 5% I would suggest

Conian

8,030 posts

202 months

Tuesday 24th June 2008
quotequote all
Engineer1 said:
Conian said:
Say you want to take it away.
Then sit at a table eating the evidence before the tax man gets you smile
The price remains the same the money goes into proift not VAT or it pays for the delivery costs on takeaway.
So... we should all claim that we're eating in... then 17.5% goes into UK coffers(sp?) instead of into Ronald McDonald's clown-suit-pockets? Intellesing Mr Bond veeeelly intellesting.

308mate

13,757 posts

223 months

Tuesday 24th June 2008
quotequote all
rich1231 said:
308mate said:
Eric Mc said:
VAT is charged on "hot prepared food". Has always been the case.
Which means he got off lightly?

1.99 + 17.5% = 2.33

scratchchin

Get a receipt and claim it.
VAT at 5% I would suggest
scratchchin

HRC website said:
Rates of VAT
Different VAT rates apply to different goods and services. Currently there are three rates:

standard rate - 17.5 per cent
reduced rate - 5 per cent
zero rate - 0 per cent
The standard rate of VAT is the default rate for goods and services unless specified otherwise.

[b]Examples of reduced rate items include:

domestic fuel and power
installation of energy-saving materials
residential conversions
women's sanitary products
children's car seats [/b]

Examples of zero-rated items include:

food - but not meals in restaurants or hot takeaways
books and newspapers
children's clothing and shoes
public transport
It seems reduced rate applies only to "essentials".


Eric Mc

122,058 posts

266 months

Tuesday 24th June 2008
quotequote all
The VAT rules on take-aways have had to be clarified a number of times since VAT was introduced in 1973. Essentially, the supply of food related services - such as take-aways, reastaurants, pubs etc are all Standard Rated for VAT purposes.

An interesing permutation on this was the "Ginster Phenomenon" of a few years ago.

You may have noticed that at one time, if you were foolish enough to buy a Ginster's sausage roll or pastie in a garage shop, the item was sold to you cold and, if you wanted it hot, you had to take it to a microwave oven on the customer side of the counter. This little trick meant that the shop was selling the food cold and could claim it was Zero Rated for VAT purposes. If the oven was behind the counter, it would have been hot and subject to 17.5% VAT.

I think thae VAT man got wise to that.

lazyitus

19,926 posts

267 months

Tuesday 24th June 2008
quotequote all
Eric Mc said:
You may have noticed that at one time, if you were foolish enough to buy a Ginster's sausage roll or pastie in a garage shop, the item was sold to you cold and, if you wanted it hot, you had to take it to a microwave oven on the customer side of the counter. This little trick meant that the shop was selling the food cold and could claim it was Zero Rated for VAT purposes. If the oven was behind the counter, it would have been hot and subject to 17.5% VAT.

I think thae VAT man got wise to that.
Mmmm, crafty.

They will soon be promoting the idea of leaving your sausage roll on top of your engine for 3 minutes. hehe

Eric Mc

122,058 posts

266 months

Tuesday 24th June 2008
quotequote all
Think of the CO2 emmissions.

lazyitus

19,926 posts

267 months

Tuesday 24th June 2008
quotequote all
Eric Mc said:
Think of the CO2 emmissions.
What, generated by the sale of meat or the exhaust fumes. Or indeed both ?

Crikey - you have a point there, Eric.

Eric Mc

122,058 posts

266 months

Tuesday 24th June 2008
quotequote all
Both - not to mention the manufacture of the car, the manufacture of the tarmac on which it is sat and the CO2 breathed out by the shop assistant. After all, it all adds up.

Edited by Eric Mc on Tuesday 24th June 14:57

Riknos

4,700 posts

205 months

Tuesday 24th June 2008
quotequote all
3sixty said:
Just been to subway for my lunch, the sub of the day was usually £1.99 for 6 inch.
I think the bigger question here that everyone seems to be avoiding is why on earth did you only half a 6 inch you big pansy? Surely it can't even be considered lunch unless you go for a full footlong!! hehe