Cold ‘dip pots’ in a hot take away meal deal

The taxpayer previously treated take-away hot chicken/pizza meal deals supplied with a cold ‘dip pot’ as the standard-rated supply of a hot meal. However in March 2019 it changed its view and submitted an error correction form to HMRC for overpaid output tax of £86 803 of which £75 502 related to the dip pots. The claim covered the periods December 2015 to September 2018.

HMRC accepted the claim and issued a repayment but a different officer rejected a subsequent claim for £33 818 for the periods December 2018 to September 2019 on the basis that the dip pots were part of the single supply of a hot meal and it would be artificial to split it into different components.

A significant historical case on the issue of dip pots was the Domino’s Pizza Group Ltd (LON/02/0527) which ruled that condiments were part of...