VAT zero ratings

I always enjoy telling the tale about my time in Customs and Excise – about 40 years ago – when I visited a take-away kebab business that only sold one zero-rated item: milk shake drinks. At the time of the previous inspection four years earlier the milk shake sales were 2% of his total turnover the balance being standard rated as hot take-away food. So far so good. However in the interim period the percentage of milk shake sales declared in his accounting records increased to 40% of total turnover a gradual increase occurring each year. On New Year’s Day in 1987 when it snowed all day and was about minus six degrees his records said that he sold a record-breaking 500 milk shakes. Fantastic! You can probably guess the rest of the story.

Anyway back to 2024 and...