Judges reject HMRC appeal and rule firm’s marshmallows are not sweets

Innovative Bites Ltd wins case brought by UK tax authority after its ‘mega’ product deemed to be an ‘ingredient’A food company has won a sweet-tasting victory against the UK tax authorities after a court decided that it did not have to pay VAT on its marshmallows because they were not confectionary.HMRC has unsuccessfully appealed against a 2022 decision by the first tier tribunal (FTT) that Innovative Bites Ltd did not have to pay a £472,928 demand for sales tax on