And finally… sweet relief
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A food firm has emerged victorious in a legal battle against HMRC, securing an exemption from VAT on its Mega Marshmallows.
The court ruling, upholding a decision by the first-tier tribunal, stated that the marshmallows are not to be considered confectionery.
The dispute arose when HMRC demanded £472,928 in sales tax from Innovative Bites, arguing that Mega Marshmallows fell under the category of confectionery and thus were subject to a 20% VAT. However, the first-tier tribunal disagreed, highlighting that the product is primarily intended for roasting rather than direct consumption.
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