Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Victory for Innovative Bites Ltd as Judges Rule Marshmallows Not Subject to VAT

by April 24, 2024
April 24, 2024
Victory for Innovative Bites Ltd as Judges Rule Marshmallows Not Subject to VAT

In a flavorful victory, Innovative Bites Ltd, a food company, has emerged triumphant against the UK tax authorities, securing a ruling that exempts its “Mega Marshmallows” from VAT due to their classification as cooking ingredients rather than confectionery.

HM Revenue and Customs (HMRC) had appealed a 2022 decision by the first-tier tribunal (FTT), which had absolved Innovative Bites Ltd from paying a hefty £472,928 in sales tax on its marshmallow products. HMRC contended that the marshmallows should be subject to the standard 20% VAT rate, given their status as “sweetened prepared food which is normally eaten with the fingers.”

However, the upper-tier tribunal rejected HMRC’s arguments, affirming the FTT’s determination that the Mega Marshmallows were predominantly sold and purchased for roasting rather than immediate consumption as confectionery. Despite HMRC’s emphasis on the means of consumption, the judges sided with Innovative Bites, highlighting the marshmallows’ intended use in cooking and their subsequent physical transformation when roasted.

The judges emphasized that roasting the marshmallows led to a distinct change in texture and flavor, distinguishing them from standard confectionery products. They also took into account the seasonal consumption patterns, noting that Mega Marshmallows were more commonly consumed during warmer months, aligning with their intended use for roasting.

This case echoes previous legal disputes over the VAT status of food items, reminiscent of the famous battle over the classification of Jaffa Cakes as biscuits or cakes in the 1990s. Similarly, the recent ruling draws parallels to a case involving Glanbia Milk’s flapjacks, where the tribunal determined their VAT liability based on factors such as consumption habits and product characteristics.

Innovative Bites Ltd’s victory underscores the nuanced nature of VAT classifications in the food industry and sets a precedent for similar cases involving the tax status of culinary products.

Read more:
Victory for Innovative Bites Ltd as Judges Rule Marshmallows Not Subject to VAT

0
FacebookTwitterGoogle +Pinterest
previous post
1 in 5 organisations have had company data exposed by an employee using AI tools such as ChatGPT
next post
Unleash Your Influence: Effective Tactics to Expand Your Social Media Reach

You may also like

Tips for Protecting Your Ageing Parents

October 28, 2022

Prime Minister splits up the business department merging...

February 7, 2023

Understanding Alternative Dispute Resolution (ADR): A Comprehensive Guide

December 30, 2024

McDonald’s Loses ‘Big Mac’ Trademark Battle Against Irish...

June 6, 2024

Rayner’s employment rights overhaul to grant 9m workers...

October 10, 2024

Proper Waste Disposal for Your Business

July 2, 2023

Inclusive leadership: strategies for supporting neurodiverse talent

February 16, 2024

Staff shortages see UK restaurants struggle to cope...

December 5, 2022

Half of UK shoppers to cut back on...

October 24, 2022

Trump’s tariffs ‘already hitting Britain’s steel exports’

March 19, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Padel club boom sees 3,200 venues built in 2024 as global popularity accelerates

      June 27, 2025
    • Sweet or taxable? M&S strawberry sandwich sparks new VAT debate

      June 27, 2025
    • Starmer thanks business for footing tax bill

      June 27, 2025
    • UK SMEs must strengthen cybersecurity as geopolitical threats escalate, warns Espria

      June 27, 2025
    • Jeremy Hunt ‘made a mistake’ targeting non-doms, says shadow business secretary

      June 27, 2025
    • Small firms raise alarm over Companies House rule change forcing profit disclosure

      June 27, 2025

    Categories

    • Business (8,326)
    • Investing (2,074)
    • Politics (15,824)
    • Stocks (3,172)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved