Tax Strategy

Description

In compliance with section 161 and paragraph 19(2) of schedule 19 Finance Act 2016, Motors.co.uk Limited is publishing its UK tax strategy for the year ending 31 December 2020.

Our business has a strong focus on corporate responsibility, and we see responsible administration and payment of taxation as a responsibility of our business.

Our overall UK tax strategy is to:

• Meet all legal requirements and to make all appropriate tax returns and tax payments.
• Seek to utilise available tax reliefs and incentives only in a manner, which is consistent with the government's policy objectives and spirit of the tax law and ensure that the tax treatment of those transactions appropriately follows the underlying commercial decision making.
• Consider tax in the context of the business operations, its environment, its reputation and brand.
• Comply with and maintain appropriate tax risk processes, and ensure there is appropriate Board oversight.

Risk management and governance arrangements

We want our UK tax affairs to be transparent and compliant with tax legislation, and recognize that managing tax compliance is increasingly complex. Our internal structure is set up to ensure:

• Our statutory directors understand the importance of tax compliance, and how it is achieved.
• There is a constant dialogue between those directors and individuals tasked with the operation of our finance function, regarding the way our business manages its tax risk.
• The business adopts and portrays a positive view towards tax compliance and the importance of meeting our obligations.

We keep under review how we meet our tax obligations, by seeking external tax advice, and through regular dialogue with HMRC.

Attitude towards risk

Compliance with our tax obligations is key to managing our tax risk. We understand the importance of tax in the wider context of business decisions and have processes in place to ensure tax is addressed appropriately as part of our decision making process. Motors is committed to complying with all applicable tax laws. Motors has a low risk appetite in relation to tax matters, assessing tax risk and making tax decisions with regards to its reputation and integrity.

Relationship with HM Revenue & Customs (HMRC)

At all times Motors adopts an open and collaborative professional relationship with HMRC. It engages in full, open and early dialogue with HMRC to discuss tax planning, strategy, risks and significant transactions. It makes fair, accurate and timely disclosures in correspondence and returns, and responds to queries and information requests in a timely fashion. It seeks to resolve issues with HMRC in real time and before returns are filed if possible, and where disagreements arise, work with HMRC to resolve issues.

Tax planning

We undertake appropriate tax planning as part of our overall business strategy. We do not undertake aggressive tax planning, or deploy artificial arrangements to obtain a tax advantage. We aim to minimize any tax compliance risk and the negative publicity which would flow from that. Professional advice is sought on a transactional basis, with the extent of such advice being driven by our assessment of the risk presented by each relevant transaction.