Reports & policies
Tax strategy
DATE OF PUBLICATION: 26 JUNE 2023
SHOP DIRECT HOLDINGS LIMITED
SUB-GROUP TAX STRATEGY – FINANCIAL YEAR ENDING 30 JUNE 2023
Shop Direct Holdings Limited is the head of a UK sub-group (“the Group”) as defined in paragraph 11(2) of Schedule 19 to the Finance Act 2016. This strategy is published on behalf of the Group in compliance with the duty under paragraph 19 of the Schedule and in accordance with paragraph 20 thereof.
The Group comprises The Very Group, The Trenport Property Group and holding companies. The Group’s tax policy is to maintain a low-risk tax profile in the UK and in other tax jurisdictions. The key areas of the policy relating to UK taxation are summarised below.
Risk management and governance
The Group’s Tax Function comprises appropriately qualified and experienced individuals who are central to its Board-led tax governance. The risk register is reviewed regularly with Directors and Senior Accounting Officers in furtherance of their oversight of tax accounting arrangements, tax affairs and tax risks. Any significant matters are reported through the Audit Committee or directly to the Board.
Attitude towards tax planning
The Group expects to apply the correct tax rules and regulations to all its commercial transactions and does not undertake transactions which are solely tax-driven with no commercial purpose.
Advice is sought from external advisers to support in-house tax functions in evaluating tax risks in complex situations and in pursuance of best practice.
Level of risk in relation to UK taxation that the Group is prepared to accept
The Group aims to pay taxes that are properly due and to do so in a timely manner. To this end, it keeps abreast of legislative changes to ensure compliance therewith. The integrity of data and calculations is fundamental to the Group’s approach to the preparation of appropriate and accurate tax returns. It is the Group’s policy that uncertainties be referred to HMRC in advance of proposed transactions or compilation of tax returns.
Approach towards dealings with HMRC
The Group aims to maintain a constructive and transparent working relationship with HMRC. The Group believes that regular contact with HMRC to advise of any significant changes or developments in the Group’s businesses or structures and to liaise on technical issues is essential to open and continuing dialogue.
The Group proactively and collaboratively works with its HMRC Customer Compliance Manager on all relevant tax matters as well as providing wider business updates.
It has been and remains the Group’s policy to notify HMRC without delay of any errors that have come to light whether they be in returns rendered or have occurred within processes.