Mega marshmallows = mega tax bill
According to the HMRC, “standard-rated confectionery includes chocolates, sweets and candies, chocolate biscuits and any other ‘items of sweetened prepared food which is normally eaten with the fingers.’” The tax agency’s online guidance gives “marshmallow” as an example of standard-rated confectionery.
However, HMRC also notes that a product sold for use as an ingredient in home cooking or baking can, in some circumstances, be zero-rated.
So, what’s a business in the marshmallow industry to do?
Source Avalara
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