This Tax Strategy, approved by the Board of Licensed Wholesale Company Limited, sets out the Groups approach to managing its tax affairs.
Licensed Wholesale Company Limited is a UK incorporated company and the holding company of a group comprising LWC Drinks Limited. It is the largest independent drinks wholesaler in the UK and operates under the LWC Drinks trading name.
The Group’s direct contribution to taxation in the UK spans corporation tax, employment taxes, stamp duty, excise duties and VAT. The Group recognises that collecting and paying tax are an important way in which our business contributes to society. The Group’s Tax Strategy is focussed on the following key components:
- To ensure that we pay the right amount of tax at the right time.
- To deliver an effective tax risk management process which reduces risk to an acceptable level.
- To arrange our tax affairs in an efficient manner.
- To develop and maintain a positive relationship with HMRC.
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.
The directors of the Group are aware of the importance of managing the Group’s tax affairs. The directors take overall responsibility for the tax affairs of the Group and delegate compliance tasks to employees and professional advisers 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 Group adopts a conservative approach to tax planning within the context of its duty to its shareholders to manage business expenses, which include taxation. The Group will only be involved in tax mitigation strategies to the extent that the strategy adopted is in line with its commercial objectives and activities and UK tax law.
UK tax law is complex and the size of the Group is such that it does not possess a full in-house tax function. In order to ensure that the activities of the Group 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 the Group’s activities and UK tax legislation the company is in regular contact with these advisors. Compliance with UK tax law imposes a significant burden on the resources of the Group.
The Group is solely UK based and does not use tax havens or complicated group structures in order to avoid or mitigate taxes.
The Group seeks to claim all relevant tax reliefs made available by the UK Government in line with the published policy objectives of such reliefs.
Working with HMRC
The Group deals with the Wealthy Mid-Sized Business Compliance Department at HMRC.
The Group 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 transactions.
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 tax submissions.