The purpose of this tax strategy is to set out Welcome Break Group’s policy and approach to conducting the tax affairs and managing the tax risk of all its UK entities, including UK permanent establishments.
This strategy was approved by the Board of Directors of the Group’s Ultimate Parent Company, Appia Group Limited on 26th January 2021 for the year ended 31 December 2021. It will be periodically reviewed by the Welcome Break Group finance team and any amendments approved by the Board of Directors. References to ‘tax’ within this strategy are to the taxes and duties in the UK which include:
- All corporate income taxes
- Indirect taxes (VAT, Stamp Duty Land Tax)
- Employment taxes (PAYE / National Insurance / Construction Industry Scheme)
- Other applicable tax matters
It is published in accordance with Schedule 19 of the Finance Act 2016.
Welcome Break Group is committed to conducting its tax affairs consistent with the following objectives:
- complying with applicable tax laws, rules, regulations and disclosure requirements;
- paying the right amount of tax, at the right rate and at the right time in accordance with tax laws, rules and regulations;
- interpreting tax law using relevant guidance and discussing such interpretation with tax authorities where appropriate;
- only undertaking tax planning which is aligned with a genuine commercial rationale;
- developing good working relationships with tax authorities and third parties; and
- proactively managing and monitoring compliance with the above tax principles.
Approach to tax risk management and governance
Ultimate responsibility for Welcome Break Group’s tax strategy and compliance rests with the Board of Directors of Appia Group Limited. The Board of Directors aim to maintain a low risk status with HMRC and ensure that the Group’s tax strategy is one of the factors considered in significant investments and business decisions.
Executive management for the Group is delegated by the Board to the executive officers.
The Chief Financial officer is the executive officer with responsibility for tax matters and reports to the Board on tax affairs and risks during the year. As Senior Accounting Officer, the Chief Financial Officer ensures the governance of tax follows the tax accounting controls and formal procedures required by the Senior Accounting Officer legislation.
Day-to-day tax matters are delegated by the Chief Financial Officer to members of the finance team who are appropriately qualified and experienced.
Where there is significant uncertainty or complexity in relation to a risk, the Group will seek advice from reputable external advisors to help understand and manage its tax position, and where appropriate, engage with tax authorities to gain certainty on the approach taken. The Group also uses external tax advisers to ensure it is kept up to date with changes to tax rules and regulations.
Attitude to tax planning
The Group actively manages its liabilities across all UK taxes, duties and contributions in a manner that is consistent with its brand reputation, corporate and social responsibilities, and which reflects the commercial operations of the business.
The Group does not undertake planning that is contrived or artificial.
When entering into commercial transactions the Group seeks to take advantage of available tax incentives, reliefs and exemptions in line with, and in the spirit of, tax legislation.
Relationship with HMRC
Welcome Break Group is committed to an open and transparent approach to dealing with HMRC based on the following:
- Acting in a professional and polite manner at all times
- Making accurate and timely disclosures and responding to all queries in a timely fashion
- Fostering an open, courteous and transparent relationship
- Actively seeking to resolve any issues in a timely manner
The finance team maintains contact with the Customer Relationship Manager and HMRC team assigned to the Group and assists HMRC during the Business Risk Review. As a result, the business considers that its relationship with HMRC is very positive.