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:confused: The 12-year legal battle


The Treasury could be forced to pay £3.5 million after a VAT error was made over Marks & Spencer teacakes.


HM Customs and Excise made the decision after the products were classified as chocolate biscuits.


The error has proven to be a costly one because chocolate biscuits are subject to standard-rate VAT and chocolate cakes are zero-rated.


The European Court of Justice agreed that a teacake is a biscuit and confirmed that the Treasury should reimburse the retailer.


Article here;


Treasury storm in a teacake - Yahoo! News UK


Please be aware of acting on advice given by PM .Anyone can make mistakes and if advice is given on the main forum people can see it to correct it ,if given privately then no one can see it to correct it. Please also be aware of giving your personal details to strangers

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This was the BBC's report


BBC NEWS | World | Europe | Teacake set to cost taxman £3.5m



Loved the Treasury's argument that if the Inland Revenue repay Marks and Spencer the VAT they have wrongly collected then M&S will be unjustly enriched.... if they don't then surely the Treasury has been unjustly enriched over the last 12 years... tricky one for the Lords :grin:

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