MTC limited group tax strategy

Group business strategy

The Group is committed to comply with all applicable tax laws, rules and regulations in the UK and pay the correct amount of tax when it is due, minimising the Group’s exposure to interest and penalties.

It is recognised that taxation matters are often significant in a corporate transaction, and therefore a key objective of our strategy is to ensure that tax affairs of the Group are in good order and uncertainties are minimised.

This tax strategy is published in accordance with paragraph 16(2), Schedule 19 Finance Act 2016 for our year ending 31 December 2023, and the policy will be reviewed annually.

Risk management and risk appetite

The Group’s established values (accountable, caring, transparent, and collaborative) are such that deliberately failing to comply with tax law is unacceptable. The Group’s tax strategy is approved by the Board in order to uphold our values and manage tax risk through such processes and communication.

We have a low tolerance to tax risk and so we always consider the tax consequences as part of our commercial activities, applying a high level of professional care and diligence to managing tax risks.

Any identified tax risks are monitored on our risk register, along with a mitigating strategy to reduce these risks. The risk register is reviewed and updated every month.

Tax planning

The Group does not engage in tax planning that does not support genuine commercial activity nor does it participate in artificial tax avoidance schemes to reduce its UK tax liabilities. The Group does not pursue tax planning that creates abusive results or wholly artificial arrangements, but will respond to tax incentives, reliefs and exemptions to the extent they are available and commercially applicable.

Tax planning is undertaken only to the extent that it is based on commercial and economic substance.

Tax control environment and governance

The Group maintains internal competence in corporate and transactional taxes to ensure corporate tax returns are properly prepared and indirect and payroll taxes are properly accounted for and reported, whilst tax guidance and advice is obtained from external tax advisors as appropriate.

Reliance is placed on external advisors for advice relating to tax in the context of commercial transactions, updates and interpretations of tax legislation. Compliance is the responsibility of the business but will be monitored where appropriate by local external tax advisors.

The senior leadership team is provided with a monthly report, prepared by the finance director, which provides an update on key issues covering tax and compliance matters.

It is the responsibility of the finance team to ensure that all taxation issues are promptly reported to the senior leadership team as soon as they become aware of them, and that all strategies to mitigate such issues are highlighted and raised.

We will only implement strategies that are supported by applicable legislation, our auditors and tax advisors.

Relationship with HMRC

The UK Group’s approach to HMRC is transparent, in line with our values, resulting in a positive working relationship.  The UK Group takes the initiative to raise with HMRC any doubtful or contentious issues, particularly to avoid uncertainty, for example where it considers that HMRC may take a different view, or where MTC is seeking confirmation of a particular approach.

The Group welcomes the opportunity of working with HMRC on a real-time basis as it believes it helps reduce uncertainty and drives value for all stakeholders in the Group’s business.