Okay, go and read this story on the BBC News site, and then (if you're a taxman or otherwise in a position to know) come back and tell me whether I've been labouring for years under a serious misapprehension about VAT on cakes and biscuits.
I could have sworn that jaffa cakes are subject to VAT. Weren't they the focus of the big legal case, many years ago, that established the whole chocolate-biscuits-are-vatable thing? I thought the definitive ruling of that was that VAT should indeed be paid on jaffa cakes, and have told people that many times over the years, whenever anyone asked me for an anecdote concerning both accountancy and cake.
I've never worked for a company that makes biscuits and/or cakes, and so have never had a reason to know this, but even so, I'm feeling like everything I know is a lie.