Spot the difference

gingerbread men

Yes, yes, anyone can spot that difference. The answer is the not the obvious one – this is a financial question. Here’s a clue – how much VAT would you pay on a Gingerbread Man? Maybe this one is common knowledge (I knew the one about Pringles and their VAT claim, or the one about Jaffa Cakes being a cake or a biscuit), but this really stops you in your tracks. The answer is that the cute little fellow on the left is deemed to be a luxury item and so attracts 20% VAT. The sad little bloke on the right is just a humble Gingerbread Man and so falls outside of the VAT remit. To be fair I put these together and maybe I’ve misinterpreted the ruling. So in their own words the ruling is:

Standard VAT of 20% applies to “Gingerbread men decorated with chocolate unless this amounts to no more than a couple of dots for eyes


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