The Hadland Care Group (The Group) does not qualify to publicise a Group tax Strategy under paragraph 19(2) of Schedule 19 of the Finance Act 2016. However, The Group, in accordance with its approach to social responsibilities has the following tax strategy policy.
Taking each of the requirements as set out in paragraph 17 of Schedule 19 in turn:
- Approach of The Group to risk management and governance arrangements
The responsibility for the tax strategy, the supporting governance framework and management of tax risk, ultimately sits with the Finance Director and the day-to-day responsibility with The Groups Financial Controller.
Key risks and issues related to tax are escalated to and considered by the Board and the Board regularly reviews The Groups risk register.
1.2 Tax risk management
The Group, which manages all its financial transactions and process from its central Hub have a variety of tax risks as below:
1.2.1 Tax compliance and reporting risks
Risks identified are submission of late or inaccurate returns, cash flow and systems or processes that are not sufficient to support tax compliance and reporting requirements.
1.2.2 Transactional risks
Risks associated with undertaking transactions without appropriate consideration of the potential tax consequences or where advice taken is not correctly implemented.
1.2.3 Reputational risks
Non-financial tax risks that may have an impact on the Company’s relationships with shareholders, customers, employees, tax authorities and the general public.
1.2.4 Principles taxes
The principle taxes the company is subject to are:
- Corporation tax on the profits of our business;
- Employer social security contributions on employment costs; and
- Value Added Tax (or its equivalent) on relevant services.
The Group aims to manage tax risk in a similar way to any area of operational risk across the Group and The Group is supported by 3rd party tax advisors.
When appropriate, the Group will look to engage with tax authorities to disclose and resolve issues, risks and uncertain tax positions. The changing nature of tax legislation means that it is often not possible to mitigate all tax risks. As a result, at any given time, the Group may be exposed to financial and reputational risks arising from its tax affairs.
- Attitude of the Group to tax planning
The Group recognises it has a legal and social responsibility to pay the right amount of tax due. Any tax planning must have a business purpose. The economic benefits associated with tax planning must never override compliance with all applicable laws. Our 3rd party tax advisors will ensure that tax planning arrangements comply with the applicable laws.
- Level of risk in relation to taxation that The Group is prepared to accept
The Group’s tax risk appetite is low and as such, where tax law is unclear or subject to interpretation, it will adopt a tax position that is to assume a transaction is not allowable.
- Approach towards dealings with HMRC
The Group seeks to comply with its tax filing, tax reporting and tax payment obligations. The responsible persons are required to maintain good relationships with HMRC, in particular:
- Pro-actively manage the Groups relationship with HMRC when required with the aim of minimising the risk of challenge, dispute or damage to its credibility.
- Participate and co-operate fully in any tax authority formal inspection process.
The tax strategic policy was approved by the Board of Hadland Care Group on the 01/09/2022.