Introduction

LWC Drinks Ltd is a UK incorporated company and is the largest independent drinks wholesaler in the UK.  The company’s direct contribution to taxation in the UK economy spans corporate, employment taxes, excise duties and VAT.

This document has been prepared in order to comply with the requirements of paragraph 16(2) and paragraph 25(1), Schedule 19 Finance Act 2016.This UK Tax Strategy document was reviewed and approved by Mr Ebrahim Mukadam, Company Director, September 2017.

Governance

The directors of the company believe that a responsible approach to all taxes is essential for the sustainability of the business.  The directors tax responsibility for the tax affairs of the company and delegate compliance task to employees with the appropriate experience of such matters. The directors aim to ensure full compliance with tax obligations in a transparent manner.

Attitude to tax planning and risk

The company adopts a conservative approach to tax planning and will only be involved in such activity tax to the extent that the strategy adopted is in line with its commercial objectives and activities. UK tax law is complex and the size of the company is such that it does not possess and in-house tax function.

In order to ensure that the activities of the company are carried out in a tax efficient manner whilst remaining compliant with all relevant tax legislation the services of leading accountants and tax advisors are used. Where uncertainty over the interpretation and application of tax law arises, these advisors are used to minimise uncertainty and risk.  Due to the increasingly complex nature of UK tax rules the company is in constant contact with these advisors.  Compliance with UK tax law imposes a significant burden on the resources of the company.

Our auditors are closely involved in the preparation and submission of our corporation tax returns to HMRC to ensure compliance in this area.

The company does not use tax havens or complicated group structures in order to avoid or mitigate taxes.

The company claims all relevant tax relief made available by the UK Government in line with the published policy objectives of such reliefs.

Working with HMRC

The company aims to meet its compliance obligations in a timely manner by making accurate returns and providing adequate disclosure on returns and in relation to specific transaction.

By using advisors to interact with HMRC the impact of new legislation and consideration of HMRC guidance is ensured.

In recent years the company has received no significant challenge from HMRC regarding its PAYE, Corporation tax, VAT or excise duty returns.

As mentioned in the published financial statement of the company for the year to 30th September 2016 there had been a historic liability following a disagreement with HMRC regarding the treatment of remuneration payments in prior years.  The negotiation with HMRC regarding this matter were carried out on a full disclosure basis. All amounts due have now been settled in full and reflected in the financial statements.