Clearsprings Ready Homes Ltd – Tax Strategy for the year ended 31 January 2023
This document has been approved by the board of directors of Clearsprings Ready Homes Ltd, on 4th May 2023.
The below sets out the Company’s (and Group’s) tax strategy, in line with Schedule 19 Finance Act 2016. This tax strategy covers the accounting period to 31 January 2023.
Tax Risk Management & Attitude to Risk
The Company and Group aims to minimise risk wherever possible, but appreciates that given the size of the Company, some element of risk is unavoidable.
The Company aims to comply with all statutory obligations and to ensure all internal tax policies and procedures are robust. The Company aims to ensure that all applicable staff have the necessary training to minimise errors, with regular update training provided to ensure staff can identify and manage tax risks.
The Group has clear tax controls in place to comply with the obligations of the Senior Accounting Officer legislation.
In the period covered, no penalties or fines for late-filing or other non-compliance have been levied for any taxes.
The Company’s SAO is responsible for ensuring that appropriate tax processes and systems are in place and that these are reviewed for operational effectiveness. The SAO works alongside two finance managers, covering Payroll and other commercial matters such as VAT. The Company encourages and supports its finance team in gaining professional qualifications (such as AAT & CIMA) to ensure the reliability and accuracy of the Company’s finances. Responsibility for the Company’s taxes and financials is shared across the team, with more complex matters reviewed and checked as appropriate.
Whilst the Company aims to maximise commercial objectives and take advantage of appropriate tax incentives, these aims will never supersede compliance with tax laws and regulations.
The Company takes a zero-tolerance approach to the facilitation of tax evasion in any form.
External tax advisors are on hand to provide tax advice and confirmation where required, for example when new legislation is introduced or on areas of uncertainty. External tax advisors prepare the UK Corporation tax returns to file with HMRC.
Attitude to Tax Planning
The Group’s tax planning strategy aims to support the commercial needs of the business whilst complying with all applicable laws and regulations.
The Group takes great care to ensure the correct amount of tax is reported and paid each year. When undertaking commercial transactions, the Group seeks to take advantage of available tax incentives, reliefs and exemptions which are consistent with the spirit as well as the letter of the tax law. External advice is sought prior to undertaking any such transactions.
In cases where guidance is unclear or the Group does not feel it has the necessary expert knowledge, external advice may be sought to support the decision-making process.
The Group does not enter into artificial tax arrangements that lack commercial purpose. In the period covered, no schemes or aggressive planning have been used by the Group. The Company only use tax planning to support the business strategy and as such all decisions will have a sound commercial rationale, will be within the confines of the law and will consider the impact that any such actions will have on our external reputation.
Working with HMRC
The Company is committed to maintaining an open and honest relationship with HMRC, working with them on a real-time basis where possible to achieve a positive collaboration.
Where possible, where the Company considers that a particular area of the legislation is unclear or where the tax treatment proposed by the Company may not be agreed by HMRC, we would aim to discuss these issues with HMRC in advance and where relevant would seek formal or informal clearance from HMRC on uncertain tax positions.
During the period covered by this strategy, interaction with HMRC has been limited to the filing of relevant returns and the making of payments. No significant other dealings with HMRC such as enquiries or assessments have occurred.
The Group endeavours to make all returns and payments in a timely manner. Any inadvertent errors identified in tax returns or computations are fully disclosed as soon as is reasonably possible.