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.
Max Schofield, a barrister at Devereux Chambers, said the outcome of that case could have broader implications: “If giant marshmallows, because they’re eaten with fingers and are sweet, fall under confectionery rules, so could sweet sandwiches.”
Adam Craggs, a partner at law firm RPC, added: “The M&S strawberry sandwich may soon join the curious canon of VAT case law. The legislation is notoriously complex and often leads to outcomes that can feel arbitrary or absurd.”
M&S has not commented on whether the item is being sold with or without VAT applied, but with increased popularity — and online debate from VAT professionals — HMRC may soon have a decision to make.
As one tax commentator wryly observed on LinkedIn: “Anyone buying this monstrosity should be charged 100% VAT — just on principle.”
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Sweet or taxable? M&S strawberry sandwich sparks new VAT debate