Lloyd Motors Limited
Board Policy on Tax Strategy
The Board acknowledges its responsibility to ensure that the Company (Lloyd Motors Limited) meets its obligations in respect of taxation and acts with integrity, in line with its values, in its dealings with all the appropriate tax authorities.
The Company carries out its business entirely in the UK and all taxes are paid there. Lloyd Motors Limited is the only active and trading company in the Group, the Company will not engage in artificial transactions the sole purpose of which is to reduce UK tax.
The Board is responsible for setting and monitoring the strategy. The finance teams of the Company, overseen by the Company’s Senior Accounting Officer are accountable to the Board for the implementation of the tax strategy and the management of tax and related risk.
The Company’s approach, is to-
- act with integrity and transparency in all tax matters
- pay the appropriate amount of taxation, in accordance with relevant legislation, whilst not taking an aggressive stance in interpreting such legislation
- have reasonable certainty as to the tax implications of our activities when making commercial decisions and
- seek external advice and / or HMRC clearance in a proactive manner in situations where the tax guidance is unclear or the company does not feel it has the necessary expert knowledge
- ensure that we act in the interests of our stakeholders by claiming due allowances and paying no more tax than is rightly due
- operate appropriate tax risk governance processes, including Board oversight
- seek to maintain low risk status with HMRC
The main elements of the Company’s tax risk management process are-
- a simple corporate structure
- experienced staff responsible for tax matters
- regular training and updates provided for non-tax staff whose actions impact upon tax processes
- regular internal review of all relevant accounting systems, processes and controls
- seeking proactive clearance from HMRC when appropriate
- involvement of third party adviser in submission of corporate tax returns
- review process for sign off of senior accounting officer submission
In dealing with HMRC the Company aims to-
- be open, fair and honest on matters of tax compliance
- file required information in a timely manner
- comply with regulatory requirements
- where disputes occur, to address them openly and promptly and
- foster a relationship of mutual trust and cooperation.
The above policy was approved by the Board of Lloyd Motors Limited on 2nd November 2020