HM Revenue and Customs has published new guidance to catering on its website following last year's successful court challenge over VAT liability on takeaway food.
Compass Group successfully challenged a ruling that sandwiches at its BBC contract should be liable for VAT last year at the Court of Appeal.
The decision, hailed as a victory by caterers, was nevertheless a headache for the taxman who faced losing out on millions in revenue.
Caterers meanwhile are predicted to see high profits now pre-packed sandwiches sold in the workplace are no longer subject to 17.5% VAT.
by Chris Druce
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