Majority of Britons feel confused by VAT healthy food rulings

 

A new survey has revealed just how confused Britons are over what foods are apparently deemed to be ‘healthy’ and ‘unhealthy’ according to the UK government’s tax rules.

The government in the UK claims that unhealthy edible products will be subject to VAT in order to discourage purchases of junk food. When asked to guess whether food products fall under the VAT-free category, intended to bring down the costs of healthy and staple food products, and those which are accountable for VAT, to discourage people from buying unhealthy items; the majority guessed incorrectly.  

The survey was conducted by the team behind Huel, a nutritionally complete powdered food product, as part of ongoing research into the understanding of healthy eating and nutrition in the UK. 2,185 British adults took part in the survey, all of whom were aged 18 years or older.

Initially, all respondents were asked “How healthy is your diet?” and provided with a scale from 1 (extremely unhealthy) to 10 (extremely healthy). The average Briton polled felt their diet was a 7 out of 10 on the scale in terms of healthiness. All respondents were then asked if they felt they had a good understanding of what food products were healthy and unhealthy, to which 89 per cent indicated that they did have a good understanding of what items were healthy.  

As part of the research, the respondents were then provided with a short paragraph which explained that the government allows tax breaks for foods which are deemed to be healthy or staple items, in order to lower the cost of following a good diet. They were also advised that food products deemed to be unhealthy are subject to 20 per cent VAT, in order to discourage shoppers from buying what is deemed to be ‘unhealthy’.

The respondents were then provided with a list of VAT exempt and charged foods and asked to identify which they believed would be VAT free and which would be subject to 20 per cent VAT. The top incorrect results were as follows:

VAT Free (deemed to be healthy and staple foods by the government, with lower prices to keep food costs down)

·         Chocolate cake – 97 per cent (of respondents wrongly guessed this would incur VAT)

·         Caramel or “millionaire’s” shortcake – 91 per cent

·         Chocolate chip cookies – 85 per cent

·         Gingerbread – 82 per cent

·         Toffee Apples – 80 per cent

·         Chilled or frozen ready meals – 79 per cent

·         Jaffa Cakes – 78 per cent

·         Tortilla chips – 73 per cent

·         Flapjacks – 66 per cent

·         Cake ingredients e.g. hundreds and thousands – 51 per cent

·         Cold sandwiches – 41 per cent

·         Fruit – 2 per cent

Subject to 20 per cent VAT (deemed to be unhealthy foods by the government and inclusive of VAT in order to discourage purchases)

• Snacking Raisins – 79 per cent (of respondents wrongly expected this item to be VAT-free)

·         Protein bar – 77 per cent

·         Frozen Yoghurt – 71 per cent

·         Roasted peanuts – 69 per cent

·         Fruit smoothies – 63 per cent

·         Cereal bars – 59 per cent

·         Hot sandwiches – 55 per cent

·         Weight Watchers chocolate wafers – 54 per cent

·         Diabetic chocolate – 31 per cent

·         Popcorn – 28 per cent

·         Potato crisps – 7 per cent

·         Chocolate-dipped shortbread biscuits – 5 per cent

When the real results were revealed to respondents, they were asked how they felt seeing which products really were and were not subject to VAT. The majority of respondents stated they felt ‘surprised’ (95 per cent) and ‘confused’ (82 per cent). When asked if they agreed with these rulings, only 6 per cent stated that they did.

Julian Hearn, Founder of Huel, commented: “We are all for healthy eating and, while the whole idea of the ‘nanny state’ is up for argument, we think this incentive to bring costs of healthy foods down is a very positive thing. Unfortunately, there are places where the categories don’t seem to make sense and may not be quite up to date with our knowledge and lifestyle today. We now have an alarming rate of the population with type 2 diabetes; we should use the VAT system as a disincentive for unhealthy foods which contribute, such as sugary foods like millionaire’s shortbread and chocolate cookies.”

He continued: “Although it is confusing in places, we need to remember that in principle this is a scheme designed to help us eat well for less. There are certainly improvements that can and should be made to develop it further – and perhaps review our need for cake, for example.” 

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