About popcorn tax

[SEsofty]

So posting for traffic

Went to supermarket today and on the receipt my children noticed that the popcorn was vat paid but the microwave popcorn wasn’t.

Cue a long conversation about Jaffa cakes.

But we couldn’t come up with a good reason why one sort is and the other isn’t. So Aibu to think both sorts of popcorn should be taxed, or not.

This is lighthearted btw just intrigued us and wondering if anyone had a good answer

Hmm

Well I would guess corn kernels would be zero rated. And they are still kernels in microwave form?

I do love a discussion of the jaffa cake case though. Yes, I am a hoot at parties.

Vat is charged on luxury food items, so maybe unpopped is seen as a basic ingredient so no tax and popped is a ready to eat snack so taxed? This is pure speculation

I think OP means already popped popcorn. I expect plain kernels would be zero VAT same as microwave version.

Ah snacks made from the swelling of corn are specifically excluded from zero rating.

So because microwave popcorn is just the kernels, it is zero rated. If you buy it as popcorn, standard.

Interestingly, some flavours of nesquick are zero rated, some standard.

Aren't the microwave ones just corn kernels though?

VAT IS NOT A TAX ON LUXURY ITEMS!!!

Probably as upthread, kernels are an ingredient while pre-popped is a snack?

When you say vat paid op, do you mean the popcorn had vat on it, and the microwave stuff didn't?

Sorry for shouting

It’s just weird.
The same brand. Same ingredients.
But if I stick it in the microwave I don’t pay tax.

Weirdly I always think of the microwave stuff as more of a treat

What I want to know is why cake is a necessity in the eyes of the taxman (or woman) but biscuits are a luxury - I think that was the outcome of the jaffa cakes case?

Someone definitely has their head screwed on if they are able to argue that cake is a necessity. Shame they can't work on sanitary protection (yes I know that's all to do with the EU and ending of this sort of bonkers rule could be a good thing to get out of Brexit, but I expect that it doesn't work like that).

So, if you want to dogde the tax man, buy microwave popcorn?! 🤔

I looked all this up once and found out Pringles are classed as a biscuit for taxation purposes

VAT IS NOT A TAX ON LUXURY ITEMS

Oh, ignore me then .

Sure seems that it is from a supermarket receipt Aridane. Why is in not a tax on luxury items?

Could it be because the ready to eat stuff is 'prepared' whereas you have to 'cook' the microwave stuff yourself?

A bit like the hot vs cold pasty situation where you have to pay VAT if they heat the pasty for you, but not if it just happens to be hot because it just came out of the oven?

So what's the cake/biscuit excuse then, Barbara? They're both prepared.

I don't know, I just know that there are lots of apparent illogical rules in the tax code, but I'm not a lawyer or a tax officer.

Maybe the people who set the rules have a list of items they have to catergorise and they sit there and toss a coin to decide whether or not it is subject to VAT?

The starting point is any supply made in the course or furtherance of business is vatable.

There are then exemptions (things like most health care, residential rent). So these are not a taxable supply.

Then there is zero rating - most food (but not catering) with certain exclusions, sale of a newly constructed dwelling, books...

There is also reduced rating which applies to certain supplies of electricity, works on certain conversions.

Most exemptions and zero rating are in place for a social or political reason - things like food, kids clothes, equipment for disabled people, health care. This is where people get the impression that vat is a tax on luxuries - it really isn't, its a tax on everything with a few exceptions.

(although Barbara was right, it tends to be luxury food items that are excluded from the zero rating)

Not Barbara, sorry FASH.

Is it that plain biscuits are an essential, so no VAT, chocolate ones aren't so you pay VAT. And then all cake is an essential, so again no VAT. I know it's not strictly luxury vs essential, but that's how it often works out.
Prepared popcorn is more of a luxury, conveniece product. I doubt when the rules were made there was as much microwave and ready popped popcorn.

WE PAY TAX ON OUR EARNINGS.

WE THEN PAY ROAD TAX, on the car used to get to get to the supermarket. TAX ON THE FUEL to get there.

MORE TAX AT THE TILL. when spending those already taxed wages.

!!!!!

Interesting find @OP

taxes are like the left over unpopped kernels in the bag....my metaphor of the day :P

There’s no such thing as road tax.

ok, i know its not road rax, just most of us call it by it's colloquially known name