Snack firm wins £470k tax battle with HMRC after proving its giant marshmallows are not sweets

A CONFECTIONERY firm has won a £470,000 tax battle after judges ruled its giant marshmallows are not sweets.

HMRC insisted Innovative Bites was liable for the huge VAT bill on the sugary treats.

But the company successfully argued the Baking Buddy Mega Marshmallows — imported from the US — should be exempt as they are “ingredients” for cooking on barbecues, rather than sweets.