Wimbledon’s Newest Star?

By now, you’ve probably seen it: the M&S strawberries and cream sandwich. Launched just in time for Wimbledon 2025, it’s sparked a flurry of reactions—some amused, some intrigued, and many simply baffled. A sweet twist on a British classic, it’s made with soft bread, whipped cream cheese, and British Red Diamond strawberries. But beyond the headlines and hashtags lies a surprisingly complex tax story.

While the internet debates whether it’s delicious or divisive, there’s a far more fascinating subplot unfolding—one that’s caught the attention of tax professionals and legal teams alike.

At the heart of the matter is the product’s definition. Why does that matter? Because how a product is defined determines which legal and tax policies apply to it. And when something new and unexpected hits the shelves, like a sweet sandwich that blurs the lines between dessert and lunch, it can disrupt more than just taste buds. It can disrupt tax codes.

In the UK, most food items sold for consumption at home are zero-rated for VAT. But there are exceptions, particularly for “confectionery,” which is standard rated at 20%. The challenge lies in the definitions. According to HMRC, confectionery includes items like chocolates, sweets, and “any item of sweetened prepared food which is normally eaten with the fingers.” Cakes, on the other hand, are generally zero-rated (unless they’re covered in chocolate).

So where does M&S’s strawberries and cream sandwich fall? It’s made with sweetened bread, filled with whipped cream cheese and British Red Diamond strawberries. It looks like a dessert, but M&S markets it as a sandwich. If HMRC classifies it as confectionery, it’s subject to 20% VAT. If it’s a cold sandwich or a cake, it could be zero-rated for UK VAT. That difference could significantly impact pricing, margins, and even consumer perception.

This isn’t just a quirky one-off. It’s part of a broader pattern. From Jaffa Cakes to marshmallows, UK courts have repeatedly been called on to interpret food definitions for VAT purposes. This case could follow the same path—starting with an HMRC ruling, and potentially a tribunal appeal or beyond.

What makes this even more interesting is the post-Brexit context. The UK now has more autonomy in shaping its tax rules, but that also means more responsibility in navigating grey areas. As new products emerge, blending categories, cultures, and consumer expectations, the law must keep up. And that’s where tax technology plays a vital role.

At Vertex, we help businesses apply accurate tax product definitions and classifications and even test it early in the product launch readiness. That means fewer surprises, faster decisions, and better compliance for businesses. Because behind every quirky product launch is a serious conversation about classification, compliance, and ultimately business’ competitive edge. 

Curious how your next product launch might be impacted by tax classification? Here’s some information on VAT determination. Whether you’re navigating VAT, inter-company, or cross-border complexity, Vertex can help you stay ahead of the curve.