HMRC refuses to stand down on £470k giant marshmallows case

  • Employment Tribunal
Peninsula Logo

Peninsula Team, Peninsula Team

(Last updated )

After losing a £470,000 VAT case at the Upper Tribunal over whether giant marshmallows are confectionery, HMRC is taking the fight to the Court of Appeal

Giant marshmallow manufacturer, Innovative Bites, has been on the mind of HMRC for quite some time and it will not be dropping the case after losing out at both the First Tier Tribunal (FTT) and the Upper Tribunal. 

HMRC has now been given the go-ahead to take the dispute to the Court of Appeal although a date has not been set for the hearing.

Both tribunals found the consumable was not a confectionary item as it was intended to be roasted over a fire, therefore making it exempt from the usual 20% VAT. 

The placement in supermarkets also came into question, as they were mostly sold on a seasonal basis within the barbeque section.

HMRC did not feel this way, issuing demands for VAT amounting to £472,928 in for 2015 to 2019.

Glyn Edwards, VAT Director at MHA said: ‘We all thought this was the end of the giant marshmallows tax debate, but HMRC have decided to appeal again in the hope of finally persuading the tax authorities that size isn’t everything. 

‘More seriously the general public might question whether this is the best use of taxpayer’s money when we all know that making any sense of the VAT dividing lines on food has defeated the best legal minds for decades.’

Visit BrAInbox today where you can find answers to questions like Is it a legal requirement to wear a beard net in a food business?

Related articles

  • paternity leave act passed


    Paternity Leave (Bereavement) Act 2024 passed before Parliament went into recess

    The sudden announcement of a general election to be held on 4 July left only a few days before Parliament closed down and gave the Government the problem of which items of legislation to quickly push through the adoption process.

    Peninsula TeamPeninsula Team
    • Employment Contract
  • potential tax rise


    Sunak's £2k tax rise jibe 'absolute garbage' says Starmer

    Taxes were on the agenda for the Prime Minister as he repeated ‘I don’t want to raise your taxes to pay for that’ at the first TV debate as he accused Starmer of targeting wealthy to fund Labour policies

    Peninsula TeamPeninsula Team
    • Pay & Benefits
  • labour updated manifesto


    Labour releases updated manifesto

    Ahead of the General Election on Thursday 4 July 2024, the Labour Party has released an updated manifesto, ‘Labour’s plan to make work pay – delivering a new deal for working people’.

    Peninsula TeamPeninsula Team
    • HR Policies Documentation
Back to resource hub

Try Brainbox for free today

When AI meets 40 years of Peninsula expertise... you get instant, expert answers to your HR and health & safety questions

Sign up to our newsletter

Get the latest news & tips that matter most to your business in our monthly newsletter.