This tax strategy has been prepared and published in accordance with paragraph 16(2), Schedule 19, Finance Act 2016 on behalf of Highland Fuels Limited and all entities in the Highland Fuels group of companies (the ‘Group’). This tax Strategy is effective from 1 January 2023, this being the commencement of the current financial year (which is ended 31 December 2023).
The tax strategy will be reviewed annually, updated as appropriate and approved by the Board of Directors. The Group Finance Director (who is also the Senior Accounting Officer for reporting purposes) is responsible for setting and monitoring the strategy; the finance team within the Group are then responsible for implementing and managing the tax strategy and related risk.
The tax strategy is consistent with the strategy and operations of the Group and been approved by the Board of Directors. It outlines the Group’s approach to:
• Tax Risk Management
• Attitude Towards Tax Planning
• Tax Risk Appetite
• Relationships with Tax Authorities
Tax Risk Management
The Group is committed to full compliance with all UK tax laws applicable to the business including, but not limited to Corporation Tax, Employments Taxes, Value Added Tax, Excise Duties and Stamp Duty.
The Group’s tax systems, processes and controls are long established, robust and are regularly reviewed and updated where appropriate to keep pace with tax legislation. The finance team is experienced in tax matters in their areas of responsibility and is headed up by the Finance Director who has close involvement with the management accounting and tax reporting for the Group.
The Finance Director regularly updates the Board on tax matters and keeps it fully informed on any significant changes which impact the business.
The routine tax affairs of the Group are generally administered internally but in cases where a requirement for specialist tax advice is identified, the Group engages with external advisors for appropriate advice to ensure compliance and mitigate any tax risks.
Attitude Towards Tax Planning
The Group only operates in the UK and has a straightforward approach to tax planning in that it operates in a tax efficient manner, taking advantage of tax reliefs and allowances available to it in the normal course of business.
The Group has a very low risk attitude to tax and therefore does not seek or participate in any aggressive tax avoidance schemes or complex tax structuring.
Tax Risk Appetite
The Group has a low risk appetite to all tax related matters, and manages its tax affairs in a proactive manner to ensure compliance with all relevant UK tax requirements/legislation.
As the Group only operates in the UK only, and due to the nature of the business, the following are the main tax risk areas:
• Failure to comply, such as late submission of returns or inaccurate returns.
• Undertaking transactions without appropriate consideration of potential taxation consequences.
• Incorrect implementation of advice taken.
• Financial and operational systems and processes being insufficient to support tax compliance and reporting requirements.
The Group uses third party advisors to provide advice and guidance as necessary to assess tax risks and ensure compliance with applicable legislation and disclosure requirements. The aim is to ensure full compliance with all statutory obligations and as a consequence seek to minimise risk wherever possible.
Relationship With HMRC
The Group has an open and transparent relationship with HMRC. Where appropriate, the Group approaches HMRC for guidance in relevant matters at early stages and, conversely, provides any information requested by HMRC in a concise and timely manner.
The tax strategy document of the Group is reviewed regularly, at least annually, with any revisions published online when approved by the Board of Directors.
The policy has been updated since the last version published in July 2022, which is primarily so that the tax strategy now reflect the Group’s risk appetite to tax.
Date of Publication: April 2023