Aritco Group (“the Group”) Tax Strategy Publication
Year ended 31 December 2017
The Group regards this publication as complying with its duty to publish its tax strategy for the year ended 31 December 2017 in accordance with current tax legislation.
It is the Group’s policy to comply with HMRC rules concerning all forms of taxation while taking advantage of accepted and efficient practices for minimising the cost to the business. The group does not take part in any tax avoidance schemes. The Group takes specialist advice from its external tax advisers as and when appropriate.
The company secretary (who is a chartered accountant) takes overall responsibility for ensuring the UK entities compliance with all taxation rules and regulations, and reports back to the Group’s Board of Directors as appropriate. He keeps in close contact with the Group’s external tax advisers and also monitors the actions of the internal teams under him on a regular basis. He has in place a detailed set of systems, procedures and controls covering all aspects of how the business is run from a financial point of view, including tax matters where relevant, to ensure that the Group’s level of tax risk remains at acceptable levels.
Corporation tax is a significant cost to the Group and it instructs external tax advisers to advise on corporation tax matters. Advantage is taken of group relief for losses, capital allowances on eligible capital spend and other statutory reliefs where applicable. The group also carefully examines all potentially disallowable expenditure for items such as business entertaining to ensure the correct disallowance of the relevant amounts are identified.
With regard to PAYE and National Insurance, the Group operates standard practices for its payroll. In the case of benefits in kind these are carefully monitored and reported to HMRC in the normal way. The Group also has in place a PAYE Settlement Agreement whereby it is able to pay tax on behalf of an employee if it wishes to reward the employee without the employee bearing additional tax thereon.
With regard to VAT, the Group has in place detailed practices whereby transactions are carefully examined by its internal accounting team who is well versed and trained to ensure the correct VAT treatment. The Group also has to account for VAT on both the Partial Exemption Method and the Capital Goods Scheme. One specialist in the Group carries out these calculations on a quarterly basis so as to ensure the correct disallowance of the relevant amounts.
The company secretary keeps in regular contact with the Customer Relationship Manager at HMRC for a discussion about any relevant matters that may have come to light during the year and any new regulations which might have an impact on the group and aims to hold a meeting with that person at least once a year.