I tried the viral Tesco birthday cake sandwich and I think it's better than the M&S strawberry version

I tried the Tesco birthday sandwich after trying the M&S strawberry version and I loved it even more!

The sandwich is perfect for sharing and is essentially a Victoria sponge cake due to the strawberry jam, brioche bread and cream cheese.

The sandwich is incredibly sweet and makes for the perfect dessert.

However, this has brought up the VAT debate once again. Small business comparison site Bionic has broken down what this could mean for Tesco’s birthday cake sandwich and why customers might want to grab one now before a potential price hike.

Similar to the M&S strawberry sando debacle, if HMRC decides Tesco’s birthday cake sandwich is confectionery rather than a standard sandwich, Tesco would need to apply the 20% VAT rate. This could lead to higher prices or slimmer profit margins, particularly if the sandwich remains part of a fixed-price meal deal.

For shoppers, this could mean a 60p price increase, from £3 to £3.60, making the sweet treat noticeably more expensive. However, since it’s included in Tesco’s meal deal, Clubcard holders can still get it for £3.60 with a drink and a side.

Laura Court-Jones, Small Business editor at Bionic, said: “Trends like this are worth watching closely, the surge in demand offers opportunities, but also potential tax pitfalls for small businesses. If a small business similarly misclassifies a product and fails to pay the correct VAT, it could face: If the error is due to a lack of reasonable care, HMRC can charge penalties up to 30% of the tax lost.

Adding: “If the error is deliberate, the penalty can be between 20% and 70%, or more if the error is concealed on purpose. Interest is charged on any VAT due from the original due date. If the classification is unclear, HMRC can challenge businesses, leading to additional costs and uncertainty, as seen in the M&S case.”

The sandwich is available until the 31st of August, so try it whilst you still can!