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Jaffa Cakes


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Even though it's called cake - i would say it's a biscuit.

Jaffa cakes are cakes for tax reasons. No seriously, they are. Most people who argue that jaffa cakes are cakes use the logical argument that when they are stale they go hard, whereas Digestives and Penguins go soft. Cake = hard, biscuit = soft. It was using this reasoning that McVities went to tribunal against the Inland Revenue over the jaffa cake’s status.

Basically biscuits are classed as a luxury item and incur a 17.5% VAT charge. Cakes, supposedly are basic foodstuffs and are therefore VAT exempt. The government wanted to get this tax flow and took McVities on. The soft/hard debate was what settled it.

I think M & S are trying or have tried the same thing with teacakes.

jaffa cakes ain’t cakes!

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