5% VAT on takeaway meals

CustomLunches

Martin - URGENT The guidance [709/1] seems to include takeaway meals but then exclude them, ie it is ambiguous. My interest is not in takeaway pizzas and Chinese meals, it is hot meals into the home of the elderly and housebound, in the past called "meals-on-wheels". I cannot see how a hot meal delivered under "meals-on-wheels" is different than any other hot meal delivered. a takeaway is surely still a takeaway, whether it is collected or delivered?
Please advise, if you can get clarity form your contacts, this is supposed to start Wednesday !
Peter
Custom Lunches Ltd Bournemouth

bradders1983

I doubt Martin Lewis reads here tbh.

mattyprice4004

Martin won't read this - speak to your accountant for guidance on exactly what is covered. 

Jeremy535897

I think I see the dilemma. You differ from a takeaway in that you deliver the food in a ready to eat state to the consumer. A takeaway in its purest form involves the consumer collecting the food from the supplying premises, to eat off the premises. 1.3 of the notice 709/1 says:
"Supplies falling within 1 to 3 above and which take place between 15 July 2020 and 12 January 2021, will qualify for the reduced rate unless they fall to be supplies of catering that are supplied off-premises (the meaning of premises is explained in section 3). However, this excludes the supply of any alcoholic beverages the supply of which remains standard rated."
The wording in 2.1 is not helpful:

"2.1 The ordinary meaning of catering

Catering in its ordinary meaning includes the supply of prepared food and drink. It is characterised by a supply involving a significant element of service. Obvious examples of supplies in the course of catering include:

• supplies made in restaurants, cafés, canteens and similar establishments (except supplies of cold takeaway food)
• third party supplies of catering for events and functions, such as wedding receptions, parties or conferences
• a supply of cooking or preparation of food provided to a customer at the customer’s home, for example for a dinner party
• delivery of cooked ready-to-eat food or meals (with or without crockery or cutlery)"

Is there any logic in treating this service differently? I can't think of any. How does it differ from a takeaway delivered by Deliveroo to the consumer's door? I can only suggest that you contact HMRC to discuss it with them.

unholyangel

Jeremy535897 said:

I think I see the dilemma. You differ from a takeaway in that you deliver the food in a ready to eat state to the consumer. A takeaway in its purest form involves the consumer collecting the food from the supplying premises, to eat off the premises. 1.3 of the notice 709/1 says:
"Supplies falling within 1 to 3 above and which take place between 15 July 2020 and 12 January 2021, will qualify for the reduced rate unless they fall to be supplies of catering that are supplied off-premises (the meaning of premises is explained in section 3). However, this excludes the supply of any alcoholic beverages the supply of which remains standard rated."
The wording in 2.1 is not helpful:

"2.1 The ordinary meaning of catering

Catering in its ordinary meaning includes the supply of prepared food and drink. It is characterised by a supply involving a significant element of service. Obvious examples of supplies in the course of catering include:

• supplies made in restaurants, cafés, canteens and similar establishments (except supplies of cold takeaway food)
• third party supplies of catering for events and functions, such as wedding receptions, parties or conferences
• a supply of cooking or preparation of food provided to a customer at the customer’s home, for example for a dinner party
• delivery of cooked ready-to-eat food or meals (with or without crockery or cutlery)"

Is there any logic in treating this service differently? I can't think of any. How does it differ from a takeaway delivered by Deliveroo to the consumer's door? I can only suggest that you contact HMRC to discuss it with them.

I would hazard a guess that distinction is in:
1) How long in advance you need to order,
2) Where they are designed to be served & eaten

I'm not personally familiar with specifics of meal & wheels but the few I've came across generally require ordering 1-4 weeks in advance. 

As for point 2, takeaway is served at business premises and consumed elsewhere. Catering the food is supplied and consumed at the same place (whether that be a canteen, function suite or in a home). I'd also say there's another disctination between the two that takeaway is generally being supplied for sale to the general public, while caterers there is a specific customer/event they are supplying. 

ETA: Sorry, just realised it might have been a rhetorical musing. VAT rules can be barmy sometimes.