Tax Strategy for Birchwood Group

Birchwood Group operates in East and West Sussex, offering comprehensive motor dealership services. As a prominent entity in the region, Birchwood Group is committed to maintaining high standards in customer service and business ethics. Our tax strategy reflects our dedication to sustainable and efficient business growth, aligning with our corporate values and governance principles.

Business Vision and Tax Strategy

Our vision at Birchwood Group is to provide exceptional dealership services in East and West Sussex, focusing on customer satisfaction and competitive pricing. This vision extends to our tax strategy, aiming for sustainable growth and value delivery to key stakeholders. Our tax strategy, approved by our board of directors, is integral to our overall business strategy and aligns with our corporate governance framework, including our Code of Ethics and Business Conduct, which emphasizes honesty, integrity, and ethical behavior.

Approach to Tax Risk Management and Governance

We have a robust tax risk management framework embedded within our business operations to identify and manage tax risks effectively.

  • Tax Risk Register and Internal Control Framework: These tools support the identification and mitigation of tax risks across our operations.
  • Board Oversight: Our board of directors owns the tax strategy, with the Finance Director responsible for its implementation. Significant tax matters are reviewed in quarterly board meetings.
  • Collaboration: Our finance team works closely with other business units to ensure tax considerations are integrated into key business decisions.
  • External Advice: We consult external advisors for complex tax matters and significant transactions to ensure compliance and stay updated on legislative changes.
  • Communication: Our tax strategy and governance principles are communicated throughout the organization, ensuring all employees understand and comply with the established standards.

Level of Tax Risk Acceptance

Birchwood Group maintains a low appetite for tax risk, structuring our operations based on sound commercial principles.

  • Risk Minimization: We strive to minimize tax risks by ensuring timely and accurate tax filings and payments.
  • Compliance: We are committed to identifying and monitoring significant tax risks, with policies and controls aligned with our low risk tolerance.
  • External Engagement: For unclear or interpretative tax laws, we engage with external advisors to ensure compliance and appropriate disclosure.

Attitude Towards Tax Planning

Our tax planning is conservative, avoiding aggressive tax strategies. We prioritize commercially driven transactions while considering tax efficiency.

  • Ethical Alignment: Our tax planning approach aligns with our Code of Ethics and Business Conduct, ensuring all actions are ethical and compliant with applicable laws and regulations.
  • External Consultation: We seek advice from external advisors for significant transactions or complex areas to ensure our practices remain compliant and ethical.

Approach Towards Dealing with Tax Authorities

We maintain open, constructive, and transparent communication with HMRC, prioritizing cooperative compliance.

  • Proactive Engagement: We aim to proactively engage with HMRC, obtaining upfront agreements or clearances on uncertain matters when appropriate.
  • Timely Responses: We respond to HMRC queries promptly and professionally, ensuring full cooperation and timely resolution of any issues.

Our published tax strategy covers all UK taxes and duties, reflecting our commitment to transparency and compliance with legal requirements, including our duty under Schedule 19 of the UK Finance Act 2016. This strategy applies to all entities within Birchwood Group and supports our vision of sustainable and ethical business growth.