The company packs edible oils and raw food ingredients, then distributes the finished goods. The company’s turnover is around £290 million per annum and on average it employs 416 people in 2019.
The company is an independent standalone company having operations in the United Kingdom. The company adopts a tax policy in compliance with current laws, rules and regulations of the United Kingdom. HMRC has assigned a customer compliance manager to the company, who is kept informed in tax matters. The company has a designated Senior Accounting officer who monitors its tax affairs as per the company’s tax strategy and its implementation. The company has been assessed by HMRC as a low-risk entity.
Since the company operates only within United Kingdom, predominantly in VAT exempt food items the tax policy and the relevant laws and regulations that affect its tax affairs are simple and easy to monitor. The company acquired 100% shares of Piquant Products Limited a SME company that manufactures condiments. Though Piquant Products is a full subsidiary of KTC Edibles Limited, the accounting and tax affairs are separately maintained subject to group tax rules. The company’s tax strategy aims at achieving two main objectives of Compliance of the tax laws, rules and regulations and ensuring no plans or schemes are practiced in the operation of the company that are commercially driven or would reduce contribution to the tax. The company is updating its procedures to be in line with the changes introduced in all tax laws and rules. With regard to Brexit, the company is registered for relevant import documentation programs to ensure the document compliances are followed and the appropriate duty and vat are paid.
With regard to the compliance the company has taken the following steps.
a. Internal guidelines are issued to the relevant employees who handle and decide on the activities that affect the tax. These guidelines are reviewed and modified as and when there are changes in the tax laws, rules and regulations including the Brexit Interstat and TSS compliance.
b. The relevant employees are trained in house or sent on external courses to ensure appropriate compliances are achieved as and when required.
c. The implementation and adherence of the guidelines are monitored by a board level officer randomly.
d. On issue of ambiguity of tax rules, the company adopts a no risk approach to ensure compliance by seeing clarification from professionals or referring to HMRC Helpline.
The company ensures its tax affairs are conducted in a very transparent way and avoid any strategy or plan which aims to reduce its contribution to tax. In case of special transactions, the company has the policy of being upfront with HMRC and applies for clearance before carrying out such special transactions.
The company and the board of directors are overall committed to the above-mentioned strategy of conducting its tax affairs in compliance to the current tax laws, rules and regulations in a fair and equitable way with its social responsibility in mind.