The Chancellor has decided that VAT at 20% should be added to all hot takeaway food bought from bakeries and supermarkets, not just products sold by fast food chains.
This means that at Greggs 18p will be added to a 90p hot sausage roll and 30p to a £1.49 pasty. A hot rotisserie chicken costing £5 at a supermarket will increase by £1.
Mr G. Osborne (The Chancellor, not our own!) said the extension was among a number that were necessary to end anomalies, and will raise an extra £125million this year and £350million a year by 2016. However ours was quite annoyed.
The detailed guidance says that 20% VAT will have to be added to all hot food, including rotisserie chicken, pies, pasties, toasted sandwiches and other products which are ‘above the ambient air temperature at the time they are provided to the customer’.
This means anything that is hotter than the surrounding air temperature when it is handed over at the till should carry VAT. Gareth muttered something about politicians, hot air and sausages!
Shelley, APA
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