Overview
- The First‑tier Tribunal ruled that whole cooked cool‑down chickens are subject to the standard 20% VAT rate as hot food.
- The decision covers sales from January 2017 to July 2020, creating a reported £17m VAT bill for the supermarket.
- Judges cited foil‑lined bags labeled “Caution: Hot Product” and evidence that bagged chickens stayed at roughly 42–45C after two hours versus 31.8C if left to cool naturally.
- Morrisons argued most buyers eat the chicken cold or later and warned VAT would lift the price from about £4.40 to £5.28, potentially cutting sales for lower‑income customers.
- The ruling rejected claims of clear HMRC guidance guaranteeing zero‑rating, and experts say any appeal would need to show an error of law, with pricing or margin responses still unclear.