In accordance with paragraph 17 (4), schedule 19 of the Finance Act 2016, this document sets out the policy and approach taken by Bugle Inn Motor Company (Holdings) Limited and its subsidiary undertakings (“the group”) in conducting its tax affairs for the accounting period ended 31 December 2023.
This document sets out the tax strategy of Bugle Inn Motor Company (Holdings) Limited and its subsidiary undertakings.
References to tax include all forms of direct and indirect tax paid by the group, including but not limited to, VAT, Corporation Tax and payroll taxes.
The group is committed to a tax strategy that is both open and compliant with the overall aim of the strategy to ensure that the correct amount of taxation is paid to HMRC.
The Board members take their responsibility seriously and ensure that adequate training is provided to the finance function, and where necessary, external advice is sought. The Head of Finance has overall responsibility for the delivery of the strategy with any significant tax matters discussed with the Board members as and when necessary.
The tax strategy is reviewed annually by the Head of Finance and discussed with the Board members who subsequently approve the document.
The key aims of the tax strategy are to ensure that the group meets all legal requirements in respect of taxation, ensuring that calculation of taxes are accurate and in line with enacted legislation.
The group is committed to complying with all applicable tax laws and manages its risk to tax in a number of ways.
The tax function is embedded in the finance team and a positive attitude towards tax accounting is cascaded down to those team members involved in operating systems.
Calculation of payroll taxes are outsourced to a competent payroll specialist. Data provided is then reviewed in-house by the Head of Finance and HR department before submission to the relevant tax authority. Risk here is deemed to be low.
The group obtains independent advice in respect of the calculation of Corporation tax, with returns and payments reviewed by the Head of Finance. Risk here is deemed to be low.
Calculation of VAT liabilities is an area of greater risk due to the nature and complexity of the group’s business. The group uses an industry standard accounting system that calculates both input and output VAT. Various internal checks are then carried out by the finance team followed by the draft VAT return being reviewed by the Financial Controller with any adjustments made that are required by legislation. A final internal check is then performed by the Head of Finance prior to submission.
Any tax planning carried out by the group is to support the activities of the business, ensuring that the group trades in a tax efficient manner whilst remaining compliant with relevant legislation. The group does not engage in any tax planning that is deemed to be aggressive or requiring notification under the disclosure of tax avoidance schemes. The group has a responsibility to shareholders to maximise tax incentives where allowed within the legislation. External advice is sought for any large or irregular transactions to ensure the correct taxes are paid.
The group has adopted an open, honest and professional relationship with HMRC and deems that integrity and transparency is the most effective way of managing tax risk. HMRC are contacted directly on occasions where specific transactions require clarification or deemed higher risk.