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<p><strong>A TOP confectionery firm has won a &pound;470,000 tax fight after a judge agreed that marshmallows are not sweets.&nbsp;</strong></p>
<p>Innovative Bites Ltd, part of the World Of Sweets group which owns Bobby&rsquo;s corner shops and Bond&rsquo;s of London, successfully defeated the HMRC.</p>
<p>The fireside faves firm had already beaten the taxman in a tribunal in 2022 over a demand for &pound;472,928 VAT.</p>
<p>It successfully argued that giant marshmallows are &ldquo;ingredients&rdquo; for cooking on a barbecue &ndash; and a judge has now upheld the earlier ruling.</p>
<p>The case echoes McVitie&rsquo;s tribunal victory in 1991 after proving that its Jaffa Cakes are cakes and not biscuits, and therefore exempt from VAT.</p>
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