VAT on sandwiches hot topic for MP
Published 22/03/2011 | 17:52
Chancellor George Osborne has been urged to review how VAT is charged on Subway's toasted sandwiches ahead of the Budget.
The DUP's Ian Paisley said the takeaway firm had written to the Chancellor to complain about "inconsistent" VAT policies.
Toasted sandwiches attract the full 20% VAT rate whereas cold takeaway food is zero-rated.
Mr Paisley said Subway's chief executive officer had written to Mr Osborne "indicating that inconsistent VAT policies on toasted sandwiches is damaging the growth of that industry".
The MP asked: "Does the Chancellor intend to review how VAT applies to toasted sandwiches and does he, like me, want to get his toasted sandwiches at a reasonable price?"
Treasury financial secretary Mark Hoban said: "I too have received many representations on this point. Of course we keep VAT under review within the restrictions that exist."
Last year a group of Subway franchisees lost a legal challenge against HM Revenue and Customs, arguing that their toasted sandwiches should be zero-rated.