Our Tax Strategy
This document sets out the tax policy for ABS Accountancy Ltd and its undertakings. We act with integrity in all tax matters, as responsible taxpayers. We are committed to full compliance with all tax obligations, and full disclosure to tax authorities as required by law.
This strategy applies to ABS Accountancy Ltd and, in general, to all companies headed by ABS Accountancy Ltd
The strategy considers the following taxes paid and administered by ABS Accountancy Ltd (“UK taxes”) the Executive Board of the company and its entities have authorised this strategy and applies from its date of publication until it superseded:
- Income Tax;
- Corporation Tax;
- Customs Duty;
- Import VAT;
- Stamp Duty Land Tax.
The content of this tax strategy statement covers:
- the approach of the companies to risk management and governance arrangements in relation to UK taxation;
- the attitude of the company towards tax planning (so far as affecting UK taxation);
- the level of risk in relation to UK taxation that the company is prepared to accept; and
- the approach of the company towards its dealings with HMRC.
In our view, the business has a wider responsibility to promote good and should not exist purely for commercial profit. We understand that the tax we pay is an important part of our wider economic and social impact and plays a key role in development, both inside and outside the UK. We regard it as a critical element of our commitment to grow in a sustainable, responsible, and socially inclusive way.
Our tax policy is based on four key tax principles:
- To ensure that the company fulfils its tax compliance obligations, both in the payment and administration of all taxes.
- Risk Management
- To ensure that the company puts in place robust controls and procedures to manage tax risk.
- To ensure that the company is transparent about its tax strategy and deals with all relevant tax authorities in an open, regular and transparent manner.
- To arrange the company’s affairs in a tax efficient manner by claiming any legitimate tax incentives or reliefs which may be offered by governments, where claiming the incentive or relief is in line with the relevant legislation. We do not enter into arrangements which are against the clear intentions of Parliament and we do not use artificial tax structures that are intended for tax avoidance.
Commitment to compliance
ABS Accountancy Ltd always applies the core principles of social responsibility and sustainability to its business and considers potential reputational impacts as part of decision making.
The company aims to be a preferred choice for customers, building sustainable long-term relationships by acting reasonably and ethically with integrity, following necessary due process.
Whilst ABS Accountancy Ltd has a responsibility to deliver returns and value for our shareholders, we also take seriously the requirement to comply with UK tax rules and regulations and pay the right amount of tax, in the right place, at the right time.
The owners expect its member businesses to aim for strict adherence to local tax legislation, and ABS Accountancy Ltd also maintains this commitment.
ABS Accountancy Ltd and its associated companies want to pay the right amount of tax. Tax risk is the risk that we may either overstate or understate the tax that we believe is due to HMRC. We recognise that as an accountancy practice, tax risk tends to be higher because of size, complexity, and the pace of business change. Given that tax is inherently complex, we invest significant resources in managing and monitoring our tax risk to ensure that we pay the right amount of tax.
The board of directors (Shareholders Council) of ABS Accountancy Ltd has assigned responsibility for tax governance too The Managing Director of ABS Accountancy Ltd (“MD”) has assumed responsibility and ownership of the tax strategy for all tax matters, for all group companies, with day-to-day management resting with the Financial Controller of ABS Accountancy Ltd. The MD is also the Senior Accounting Officer (“SAO”) responsible for monitoring the integrity of the respective financial reporting systems, internal controls, and risk management frameworks, including those relating to taxation.
Processes relating to specific UK taxes are allocated to the appropriate internal specialists who maintain monitoring systems and activities to identify and mitigate risks. Changes to business activity and legislation impacting existing systems, processes, and reporting, requiring meaningful changes to address threats based on materiality and relevant obligations.
- ABS Accountancy Ltd is also required to report to and consult with the shareholders regarding material issues affecting the structure or operation of the UK businesses from a tax perspective, including identifying significant risk.
Legitimate tax planning
The company generally seeks to structure commercial transactions in a tax-efficient manner in order to maximise shareholder value. Therefore, the company seeks to optimise its commercial position by claiming tax reliefs and incentives that are available under UK tax law (and not against the clear intentions of Parliament) and Double Taxation Agreements that HMRC has signed with tax authorities in overseas tax jurisdictions. For example, such reliefs might include statutory reliefs to claim capital allowances, relief for tax suffered overseas, group relief claims, or a claim to exempt a capital gain under the Substantial Shareholding Exemption. We understand that HMRC regards claims for such reliefs as legitimate and mainstream tax planning.
The company always considers its reputation, brand, corporate and social responsibilities when evaluating tax matters and seeks to avoid any tax controversy which may bring the brand into disrepute. Accordingly, the company does not devise or implement UK tax avoidance schemes.
Instead, we focus on building shareholder value through legitimate commercial business activity.
Responsible attitude toward risk and arranging our tax affairs
ABS Accountancy Ltd seeks to actively identify, evaluate, monitor, and manage tax risk associated with our business activities.
We aim for certainty on the tax positions adopted and, to adhere to our principles, any structuring undertaken will have commercial and economic substance.
According to the tax legislation’s spirit, we will take advantage of available tax incentives, reliefs, and exemptions.
In line with its cultural values, ABS Accountancy Ltd will not enter into transactions which it considers are contrived, artificial, or counter the spirit of the law or whose primary purpose is to create an abusive tax result.
However, UK tax law is complex and continuously evolving; consequently, the correct position can sometimes be unclear. ABS Accountancy Ltd may therefore challenge the interpretation and views of the UK tax authorities.
There is significant uncertainty, complexity, or material amounts in question. We may seek external advice from reputable tax advisors, legal firms, or tax counsel as appropriate and will follow necessary due process to address identified risks.
Relationship with HMRC
ABS Accountancy Ltd is committed to the principles of integrity, transparency, and openness and seeks to apply these in its dealings with UK tax authorities. Wherever possible, we aim for constructive and early discussions on any new arising tax matter to obtain certainty. When submitting tax computations and returns to Tax Authorities, we disclose all relevant facts and circumstances. We may meet with relevant Tax Authorities to discuss any transactions or issues where there is potential for the tax treatment to be uncertain.
- ABS Accountancy Ltd seeks to pay its UK taxes appropriately and provide any relevant information requested by the tax authorities.
ABS Accountancy Ltd and the companies within it regarding the publication of this Tax Strategy complying with the duty under paragraphs 16(2) and 22(2) of Part 2 of Schedule 19 of the Finance Act 2016 in the current financial year.
Last Updated: March 2021.