UK Tax Strategy
Published in accordance with Schedule 19 to the Finance Act 2016.
This statement sets out the UK tax strategy of Carsa Limited (“Carsa”). It is published in accordance with Schedule 19 to the Finance Act 2016. It remains in effect until a revised strategy is approved by the board and published.
Carsa is a UK used car retailer. It sells used vehicles and associated products and services, including vehicle finance arranged with third-party lenders, warranties and part exchange, both online and through its retail stores. Carsa is based in, and trades only within, the UK.
The board reviews this strategy at least once a year to make sure it remains appropriate to the business and its approach to tax risk.
Governance and tax risk management
The board of Carsa has overall responsibility for the company’s tax strategy and approves it each year. The Finance Director has executive responsibility for delivering the strategy, for tax compliance and for maintaining appropriate tax accounting arrangements.
Day-to-day tax matters are led by the Financial Controller and supported by the finance team and external tax advisers.
- Corporation Tax
- VAT (incl. second-hand margin scheme)
- PAYE and National Insurance
- CT61 Returns
Tax risk is managed through:
- Documented finance processes and controls over transactions with a tax impact.
- Review of significant or unusual transactions by the Finance Director before they are undertaken.
- External professional advice on complex or uncertain matters.
- Monitoring of changes in tax law and in Carsa’s own business, and training for staff where needed.
Attitude to tax planning
Carsa does not undertake aggressive or artificial tax planning. Tax follows the commercial substance of what the business does, and Carsa does not enter into arrangements whose main purpose is to obtain a tax advantage.
Carsa does claim the incentives and reliefs available under UK tax law where it qualifies for them — such as capital allowances and research and development relief. Where the right treatment is uncertain, Carsa takes external professional advice.
Level of tax risk
The board has a low appetite for tax risk and seeks certainty in its tax and financial reporting obligations.
- Comply with all relevant UK tax laws, regulations and reporting requirements.
- Submit all returns and pay all tax on time.
- Pay the right amount of tax in line with statute and case law.
- Apply professional care and awareness in managing all tax risks.
Relationship with HMRC
Carsa is committed to an open, transparent and respectful relationship with HMRC. It works with HMRC collaboratively, discloses any significant uncertainty in its tax position, and responds to enquiries promptly and constructively.
Approval
This tax strategy was approved by the board of Carsa Limited.
The following signatory approved this UK Tax Strategy on behalf of the Carsa Limited board.