Overview

• The £2.80 Red Diamond Strawberry & Creme Sandwich launched on June 25 and sold out nationwide within days of its Wimbledon-season debut.
• Inspired by Japanese sweet sandos, the dessert pairs fresh strawberries and light whipped crème cheese on soft sweetened bread.
• HMRC raised a formal dispute on June 30, arguing that finger-held sweets should be taxed at the standard VAT rate rather than zero-rated as a cold sandwich.
• Tax specialists warn the case could echo past battles like the 1991 Jaffa Cake ruling and may ultimately be settled in court.
• Marks & Spencer has not clarified whether the listed price includes VAT, leaving potential impacts on margins and consumer costs unresolved.