This document sets out the tax strategy adopted by H.G. Construction (Holdings) Limited and subsidiary entities (together “the Group”). This document and the principles set out relates to the financial year to 31 December 2022.
This document has been published in accordance with paragraph 19(2), Schedule 19 of the Finance Act 2016.
UK TAX RISK MANAGEMENT AND PROCEDURES
Our business has a strong focus on delivering our work for clients responsibly as set out in the capabilities section of our website. We look to achieve the highest standards as a responsible business across key areas such as Health, Safety and Welfare, Environmental, Quality and Social Value. This strong sense of responsibility is part of our culture and it also extends to the administration and payment of the right amount of UK tax.
The Board of Directors has overall responsibility for the tax strategy and ensuring those under their control comply with it.
The principles have been agreed with the Senior Accounting Officer who is responsible for the implementation of the tax strategy, the tax control framework and ensuring the finance team has the necessary training, skills and support to implement the Group’s tax strategy. The tax strategy has also been communicated to the Group’s Finance Team.
We keep under review how we meet our tax obligations, particularly when going through internal, commercial or structural changes, by seeking external tax advice and investing in appropriate training for our staff.
The Group regularly reviews their systems and controls to ensure that these maintain pace with changes in tax legislation so that tax risks are managed.
ATTITUDE TO TAX PLANNING
The Group’s business activities are conducted appropriately and rationally in line with business objectives. We do not undertake any artificial transactions with the sole purpose of obtaining a tax advantage.
The Group has a responsibility to minimise tax risk and exposure to negative publicity through non-compliance. Led by our internal policies, we strive to eliminate double taxation and appropriately utilise tax incentives to achieve an appropriate and fair effective tax rate in the manner intended by Parliament.
In cases where the tax guidance is unclear or the Group does not feel it has the necessary expert knowledge to assess the tax consequences adequately, external advice is pro-actively sought to support our decision-making process.
LEVEL OF RISK ACCEPTED FOR UK TAXATION
As a large business in the construction industry, the Group is inevitably exposed to a level of tax risk and uncertainty. The Group recognises this and attempts to mitigate risks and uncertainty where possible through clear tax policies, procedures and internal controls while being mindful of the needs and long-term interests of its stakeholders.
The Group is a UK headquartered business with no overseas subsidiaries and considers itself as risk adverse regarding taxation matters. We take a low-risk approach when considering significant transactions consistent with our overall tax strategy.
WORKING WITH HM REVENUE & CUSTOMS (“HMRC”)
The Group works collaboratively with HMRC and acts in an open and honest way. It appropriately discloses information and engages in constructive dialogue. As far as reasonably possible, the Group complies with all the disclosure obligations required of it by HMRC.
The Group employs the services of professional tax advisers to act as our agents, and in a number of cases they liaise with HMRC on our behalf. This is to ensure we get the most out of our relationship with HMRC, as well as manage and mitigate tax risk.
Where there is any uncertainty on a significant transaction the Group will consider seeking any available pre-transaction clearances from HMRC, to gain proactive agreement on the tax implications, and to achieve certainty wherever possible. If a dispute on any tax manner were to arise the Group will aim to promptly resolve the matter with HMRC in a fair manner.