.png)
.png)
Eat Ltd (TC6953)
The taxpayer made voluntary disclosures claiming that breakfast muffins and grilled ciabatta rolls should be zero rated when sold on a take-away basis because they qualified as ‘cold food’. This seemed to contradict the key facts:
- both products were served to customers at a heat that was well above the ambient air temperature;
- the muffins were wrapped in a foil-backed sheet to keep them hot when they were served to customers; and
- the packaging included the words ‘eat’ and ‘hot’.
The tax at stake exceeded £1.2m and related to sales made between 2005 and 2009. The delay in reaching the tribunal was linked to the Court of Appeal hearing in Sub One Ltd (trading as Subway) v CRC [2014] STC 2508 which went in favour of HMRC.
The taxpayer said the heating process and serving of hot food to the customer was to achieve a sale of ‘fresh food’ rather than ‘hot food’....
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
