Hot Potato: Walkers’ Sensations Poppadoms vs HMRC

In a case reminiscent of Jaffa Cakes vs HMRC, Walkers have just faced their own Goliath vs Goliath battle against HM Revenue and Customs. The case in point: whether Walkers’ Sensations Poppadoms count as poppadoms (a food item and therefore zero-rated for VAT) or crisps (a snack, with full VAT slapped on top).

However, unlike the famous Jaffa case, which found in McVitie’s favour and cemented the Jaffa’s status as a cake for once and for all, last week a tax tribunal decided that the “small, generally round, bite-sized” Walkers’ Sensations poppadom is a crisp in all but name.

Walkers had tried to argue that they should count as poppadoms (and therefore zero-rated food) because:

they are not a potato product – Walkers tried to argue that potato starch doesn’t count as ‘potato’; the tribunal said potato starch certainly is potato which makes Walkers’ poppadoms 40% potato – and that’s enough potato to count as a potato-based product.

they don’t taste of potato – the tribunal said this was beside the point (you only have to look at our Flavour Index to realise that a lot of potato crisps don’t taste of potato…). I was mildy disappointed that we didn’t get a mention.

they are not ready for human consumption – Walkers said that they’re not ready for eating until you add another ingredient (a dip, for example); the tribunal disagreed (see also next point).

they aren’t like crisps, with reasons including…

• they’re part of a meal – HMRC pointed out that Walkers’ own marketing showed their Sensations Poppadoms being consumed on their own, just like crisps.

• they aren’t packaged like crisps. Here is a photo of a Walkers Sensations crisp packet next to one of their poppadom packets. Guess what the tribunal decided.

• they’re called ‘poppadoms’. But the tribunal pointed out, Hula Hoops aren’t hoops you hula with, and Monster Munches aren’t snacks for monsters. So Walkers’ Sensations Poppadoms aren’t necessarily poppadoms.

• they don’t look like crisps. [Whispers] They kinda do…

They tried a number of other tacks, including ‘well, no one else thinks they’re crisps’ – the tribunal was dubious about their ‘evidence’ for this. I’d say from a quick trawl of the internet, plenty of people treat them like crisps; and they tried some technical arguments about Fiscal Neutrality. The tribunal wasn’t having any of it. Better luck next time, Walkers…

Of course, from the Museum’s perspective, Walkers’ Sensations Poppadoms don’t meet our strict criteria for what counts as a potato crisp, but we’re not the ones deciding who pays what for what.