Free Food Vat

[Irene1966]

If I give away free hot food from my restaurant to take away, with the purchase of a cold drink . Do I have to pay vat on the drink.

 

[TheBusinessCEO]

So Are you asking whether you have to pay 20% of £0?

 

[billmccallum1957]

Food and drink for human consumption is usually zero-rated but some items are always standard-rated. These include catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water. from https://www.gov.uk/guidance/rates-o...nd-drink-animals-animal-feed-plants-and-seeds

If you're VAT registered you have to charge VAT if not, you can't.

 

[Mr D]

If I give away free hot food from my restaurant to take away, with the purchase of a cold drink . Do I have to pay vat on the drink.

Do your buyers pay vat on the drink?
If yes then you collect it as normal.

 

[Irene1966]

So Are you asking whether you have to pay 20% of £0?

What I am wondering is if I sold a cold drink for say £4.00 and gave away a bap for free to take away... do I need to pay 20% . I know the cold drink is zero rated and the hot food usually is standard. But is there anything that prevents me from charging, what could be seen as a higher price for the drink and giving away the free food. Just a thought!

 

[Scalloway]

If the price is described as being for the drink then the food doesn't count for calculating VAT.

 

[Philip Hoyle]

I know the cold drink is zero rated

Which is where you're wrong. All supplies in the course of catering are standard rated 20%. Most "cold" drinks will be standard rated anyway, i.e. cans of coke etc. if sold in a shop. Sorry, your cunning plan won't work.

 

[Irene1966]

Which is where you're wrong. All supplies in the course of catering are standard rated 20%. Most "cold" drinks will be standard rated anyway, i.e. cans of coke etc. if sold in a shop. Sorry, your cunning plan won't work.

Cunning devil indeed. Especially if my business survives.

 

[spidersong]

Unless it's milkshakes - milkshakes to take away can be zero rated.

But even if you describe it as a milkshake with a free hot bap then do you also advertise the milkshake without the bap? because if you're not also selling it on its own at the same price as with the bap then HMRC will probably view it as a mixed supply and you'll still be looking at applying some VAT.

So your choice seems to be sell milkshakes and take all the profit on them or sell a milkshake with a free bap and cut into your margins significantly.

I'm not really seeing an upside here.

 

[Irene1966]

Unless it's milkshakes - milkshakes to take away can be zero rated.

But even if you describe it as a milkshake with a free hot bap then do you also advertise the milkshake without the bap? because if you're not also selling it on its own at the same price as with the bap then HMRC will probably view it as a mixed supply and you'll still be looking at applying some VAT.

So your choice seems to be sell milkshakes and take all the profit on them or sell a milkshake with a free bap and cut into your margins significantly.

I'm not really seeing an upside here.

Thanks for your input. Helps with my thought process

 

[TheBusinessCEO]

What I am wondering is if I sold a cold drink for say £4.00 and gave away a bap for free to take away... do I need to pay 20% . I know the cold drink is zero rated and the hot food usually is standard. But is there anything that prevents me from charging, what could be seen as a higher price for the drink and giving away the free food. Just a thought!

I thought drinks were 20% anyway