The First Tier Tribunal has released its decision in the appeal of Clearwater Hampers Ltd v HMRC [2026] UKFTT 567 (TC). 

The case concerns the application of the single versus multiple supply rules to curated food and drink hampers packaged in lidded wicker baskets. HMRC accepted that the food and drink packaged in cardboard boxes, bamboo trays, and open wicker baskets were simply packaged products with the ancillary packaging following the VAT treatment of the food and drink products. However, when provided in a lidded wicker basket, HMRC contended there was an additional separate supply from the view of the purchaser, gifting a basket in addition to the food and drink, capable of reuse. HMRC relied heavily on their own guidance which has been in place since the 1980s, pre-dating many of the key VAT authorities on single composite supplies. 

Max’s client, Clearwater Hampers trading via hampers.com, argued that the lidded wicker baskets were appropriate packaging for the protection of the contents as well as their presentation and unboxing. These lidded baskets were mostly used for more expensive and heavier food collections. The basket was, therefore, ancillary to the principal supplies of food and drink: supportive and for the better enjoyment, rather than having an aim itself. Simply being capable of reuse, similar to older case law on biscuit tins and nappy boxes, does not necessitate the conclusion that it is more than ancillary. 

The appeal succeeded with the Tribunal finding that the lidded wicker baskets were ancillary to the mixed supply of food, following the underlying VAT treatment rather than being an additional standard rated supply. 

Max was instructed by Rhys Pippard of VAT Consultant Associates

To instruct Max, please contact Rob or Curtis.