We maintain high ethical standards and this includes complying with the tax laws under which we operate and paying the correct taxes.
We now publish our tax strategy in accordance with measures contained in paragraph 16 (2) of Schedule 19 of Finance Act 2016. The strategy has been reviewed and adopted by the Board on 28 March 2019. This strategy relates to the current accounting period ending 31 March 2024.
Approach to Risk management and governance arrangements
The Group’s policy is to comply with all relevant laws, rules and regulations and to pay the right amount of tax on time. We have created policies and processes to ensure there is a framework and culture to underpin the requirements.
The Chief Financial Officer is responsible for the management of the Group’s tax affairs and is also the Senior Accounting Officer. He is supported by the Head of Tax and Treasury. Tax compliance is reported on a monthly basis to the Board.
The Chief Financial Officer reviews the tax disclosure made in the Annual report and accounts and is made aware of any significant tax issues.
The Group follows a policy of continuous improvement to ensure processes evolve to reflect changes in business operations and the relevant legislation and guidance. Professional advice is used to achieve best practice in the above. The Corporation Tax returns are reviewed by an external professional adviser before submission to HMRC.
Attitude to Tax planning
We seek to reduce the risk of uncertainty and disputes by adhering to the relevant tax laws. We do not engage in artificial tax engagements.
The Group tax department engages with the business to ensure efficient tax planning both in day to day commercial affairs and where larger transactions, re-organisations or restructures take place.
The level of risk that KCOM is prepared to accept
We take a conservative approach to tax risk, which it manages by:
Culture
Creating a top to bottom culture business-wide that follows the appropriate policies.
Commercial
Making major business decisions on a commercial first basis.
Non engagement
Not engaging in aggressive/high risk tax planning and solutions.
Risk reduction
Creating, reviewing and updating tax policies and processes on an operational basis to reduce overall tax risk.
Professional advisers
Engaging with professional advisers to best understand complex issues and current industry and tax best practice.
Full disclosure
Engaging with HMRC, on a full disclosure basis, when uncertainty regarding transactions exist. This includes applying for the correct clearances from HMRC where required.
Approach toward its dealing with HMRC
We're committed to working with HMRC on an open, transparent and collaborative basis. Our aim is to:
Culture
Creating a top to bottom culture business-wide that follows the appropriate policies.
Commercial
Making major business decisions on a commercial first basis.
Non engagement
Not engaging in aggressive/high risk tax planning and solutions.
Risk reduction
Creating, reviewing and updating tax policies and processes on an operational basis to reduce overall tax risk.
Professional advisers
Engaging with professional advisers to best understand complex issues and current industry and tax best practice.
Full disclosure
Engaging with HMRC, on a full disclosure basis, when uncertainty regarding transactions exist. This includes applying for the correct clearances from HMRC where required.