VAT on Gift Boxes

lal5000

Hi,

Not sure if anyone can help me with this. My accountant is pretty useless. Need a new one.

I am a VAT registered beekeeper.

I normally sell honey in standard jars and these are 0% (Z) VAT rated.

This year I want to sell some gift boxes.

These will be plain brown cardboard boxes with some brown twine (it will look just like a parcel).

In the box will be the following items:

1 x runny honey - 0% VAT - £6
1 x soft set honey - 0% VAT - £6

1 honey dipper - 20% VAT - cost me 12p each
1 x beeswax wrap - 20% VAT - cost me 25p each plus wax and a small amount of time to make them

I will fill the boxes with old shredded cardboard packaging so nothing too fancy.

I had planned to sell these for £15 each but not sure how much VAT to charge.

I was thinking £12 worth of 0% rated honey leaves £3, 1/6th of £3 = 50p

Does that sound about right?

I cant end up in the situation where I put something in the box, or present the box in the certain way that the whole item becomes 20% taxable.

Any thoughts? Ideally, I would like it to all be 0%!

Caz3121

https://www.gov.uk/guidance/food-products-and-vat-notice-70114#mixed-supplies-mixtures-promotional-linked-items-and-packaging

lal5000

Ah that's amazing. Its fully exempt and zero rated then!

Thanks so much!