I may have the answer to the Pasty Tax

In its wisdom the Government decided to extend 20 per cent VAT to baked goods taken away. The target was the big supermarkets who have been getting away with VAT free sales of hot food that other outlets – fish and chip shops for example – have had to put on their prices to customers.

The unintended consequence is that this new rule catches out dozens of… small bakeries, cafes and other businesses that sell such goods – in particular pasties and disproportionately businesses in Devon & Cornwall.

I think there’s a way round this if every business in Devon & Cornwall stopped selling hot pasties. Once the customer has paid for their cold pasty they hand it back to the shop and ask if they wouldn’t mind putting it in the microwave or in the oven for collection later!

The key is for the shop not to advertise such a service and for us – the pasty eating customers – to ensure we are all in on the secret.

The result is we get our pasties for the same price we currently pay, the small businesses of Devon & Cornwall don’t lose any sales, and the supermarkets end up paying the VAT that was the Government’s aim in the first place.

If there’s a flaw in my plan please let me know?

4 comments to I may have the answer to the Pasty Tax

  • John Doran

    Or… The shop advertises a pasty warming service for 5p (4p plus 1p vat).

  • Sue

    Alternatively, we could leave the EU. VAT is an EU tax and if we leave, we can charge exactly what we please.

    • John Doran

      That would of course explain why they have vat in Norway, Switzerland, India, China, Mexico, etc. Personally I think this tax is imposed because the green lizards that run the country can’t eat pasties.

  • Paul Webster

    Even if such an idea were to be allowed … it would surely be easier for a supermarket to implement it than a small shop.
    In a supermarket, the customer could pick it up at the end of their shopping visit rather than hanging around the small short and causing a queue.

    Prior to this storm … did consumers knew that they were not paying VAT on some hot takeaway food?

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