Addison Lee Tax Strategy

Addison Lee sets out below its tax strategy for all UK companies within the Addison Lee Group. This strategy has been prepared in respect of the financial year ended 31 August 2018 and applies until superseded.

Unless otherwise stated, references to ‘Addison Lee’ or ‘the UK Group’ mean all UK companies within the Addison Lee Holdings Limited worldwide group.

This tax strategy applies to all UK taxes applicable to the UK Group and has been approved by the Board of Directors of Addison Lee Holdings Limited. It will be reviewed and updated annually, as appropriate. The Board is responsible for setting and monitoring the strategy.

The UK Group’s Tax Strategy is guided by our vision “to be the most trusted business-class car service” and our commitment to be a responsible business. Our values reflect our commitment to our customers, our people, to innovation and integrity and being the best at what we do.

The UK Group’s approach to risk management and governance arrangements in relation to UK taxation

Responsibility for the UK Group’s approach to tax and the management of tax risk sits with the Board of Directors. The day-to-day management of tax compliance of the UK Group sits with the respective UK financial controllers and the tax department, under the oversight of the Audit & Risk Committee. The finance teams of the UK Group are accountable to the Board in respect of the management of tax and related risk.

The UK Group has developed systems, controls, policies and procedures to identify and manage tax risk. Specifically, in relation to UK tax, the risks inherent in the calculation, collection and payment of employment taxes, VAT and corporation tax are mitigated by the controls in place.

The tax department is part of the finance function under the responsibility of the Chief Financial Officer, who is also our Senior Accounting Officer.

The UK Group’s attitude to tax planning

In structuring our commercial activities, the UK Group will not engage in artificial transactions of which the sole purpose is to reduce UK tax. The UK Group will consider undertaking a transaction in a way that gives rise to UK tax efficiencies providing this is aligned to the UK Group’s commercial objectives and complies with the associated UK tax legislation. The UK Group will not engage in tax efficiencies if the underlying commercial objectives are not supported, or if the arrangements impact upon the UK Group’s reputation, brand, corporate and social responsibilities, or future working relationships with HMRC. External advice is sought in relation to areas of complexity or uncertainty to support the Group in complying with its tax strategy and obligations. As the group grows internationally we will consider, among other factors, the tax laws of the countries in which we provide services to, for example in respect of cross border VAT.

The UK Group and the acceptable level of tax risk

The UK Group’s tax strategic aim is to maintain a low UK tax risk rating as determined by HMRC’s Business Risk Review process whilst maximising value on a sustainable basis for the stakeholders. The UK Group seeks to achieve this aim through:

  • submission of all UK tax returns on a timely basis, including sufficient detail to enable HMRC to form an accurate view of the affairs of the company filing the return;
  • paying the appropriate amount of tax at the right time and where this view may differ to the position taken by HMRC, the UK Group aims to be transparent about the filing position it has taken through relevant disclosures;
  • maintain tax accounting arrangements which are robust and accurate and comply with the Senior Accounting Officer (SAO) provisions in the UK;
  • ensuring that the finance department who are involved in the UK Group’s tax processes is both adequately resourced and supported and that key personnel are retained to manage tax compliance issues on a timely basis; and
  • ensure all tax filing positions are supported with appropriate documentary evidence.

Working with HMRC

The UK Group will comply with all relevant legal disclosure and approval requirements and all information will be clearly presented to HMRC. In its dealings with HMRC, the UK Group will act in an open, honest and transparent manner. The UK Group will maintain an open dialogue with HMRC on a real-time basis where possible to minimise tax risk. The UK Group’s strategic aim is to avoid unnecessary disputes with HMRC and thus minimise tax risk, and we will seek to achieve this through continuing to host regular face-to-face meetings with HMRC to discuss current business initiatives and the associated tax accounting; where appropriate, seeking pre-transaction clearances from HMRC and making the tax compliance procedures and controls available for review by HMRC upon request.

The tax strategy has been prepared in accordance with paragraph 16(2) and paragraph 25(1), Schedule 19, Finance Act 2016.
Date: 26 July 2018
————————————————————————————————————————————————————————————————-