Lil-Lets UK Limited Tax Strategy

This strategy applies to Lil lets UK Limited and to other UK group companies within the Lil lets Group (“Lil-lets”) in accordance with paragraphs 16 and 19 of Schedule 19 to the Finance Act 2016. A list of the entities to which it applies is set out below. In this strategy, references to ‘Lil lets’, or ‘the group’ are to all these entities. The strategy has been published in accordance with paragraph 16(2) of the Schedule.

This strategy applies from the date of publication until it is superseded. References to ‘UK Taxation’ are to the taxes and duties set out in paragraph 15(1) of the Schedule which include Income Tax, Corporation Tax, PAYE, NIC, VAT, Insurance Premium Tax, and Stamp Duty Land Tax. References to ‘tax’, ‘taxes’ or ‘taxation’ are to UK taxation and to all corresponding worldwide taxes and similar duties in respect of which the Company has legal responsibilities.

Lil-Lets is committed to full compliance with all statutory obligations and full disclosure to relevant tax authorities. The group’s tax affairs are managed in a way which takes into account the group’s wider corporate reputation in line with Lil-Lets UK Ltd’s overall high standards of governance.

• Ultimate responsibility for Lil-Lets tax strategy and compliance rests with the Board of Lil-Lets UK Limited;
• Executive management of the Company’s tax matters is delegated by the Board to the Finance Director who is also the Company Secretary;
• The Finance Director/Company Secretary attends board meetings and has executive responsibility for tax matters and communicates with and advises the Board on the tax affairs and risks of the Group, to ensure:
  • the proper control and management of tax risk;
  • the tax position is planned in line with the Group’s strategic objectives;
  • the tax charge is correctly stated in the statutory accounts and tax returns; and
  • all tax compliance is completed in a timely manner to HMRC.
• Day-to-day management of Lil-Lets’ tax affairs is managed by the Finance Director/Company Secretary and the finance team, who report to the Finance Director/Company Secretary;
• The Finance team is staffed with appropriately qualified individuals;
• The staff responsible for the tax affairs receive appropriate tax training in accordance with their roles.
• The Board ensures that Lil-Lets’ tax strategy is one of the factors considered in all investments and significant business decisions taken;
• The Finance Director/Company Secretary reports directly to the Board on Lil-Lets’ tax affairs and risks during the year.

• Effective risk management is paramount for the Group and underpins its business Policy.
• Lil-Lets operates a system of tax risk assessment and controls as a component of the overall internal control framework applicable to the group’s financial reporting system;
• Lil-Lets seeks to reduce the level of tax risk arising from its operations as far as is reasonably practicable by ensuring that reasonable care is applied in relation to all processes which could materially affect its compliance with its tax obligations;
• Processes relating to different taxes are allocated to appropriate process owners, who carry out a review of activities and processes to identify key risks and mitigating controls in place. These key risks are monitored for business and legislative changes which may impact them and changes to processes or controls are made when required;
• Appropriate training is carried out for staff who manage or process matters which have tax implications;
• Advice is sought from external advisers where appropriate.

Lil-Lets manages risks to ensure compliance with legal requirements in a manner which ensures payment of the right amount of tax.

When entering into commercial transactions, Lil-Lets seeks to take advantage of available tax incentives, reliefs and exemptions in line with, and in the spirit of, tax legislation. Lil-Lets does not undertake tax planning unrelated to such commercial transactions.

The level of risk which Lil-Lets accepts in relation to UK taxation is consistent with its overall objective of achieving certainty in the group’s tax affairs. At all times Lil-Lets seeks to comply fully with its regulatory and other obligations and to act in a way which upholds its reputation as a responsible corporate citizen. In relation to any specific issue or transaction, the Board is ultimately responsible for identifying the risks, including tax risks, which need to be addressed and for determining what actions should be taken to manage those risks, having regard to the materiality of the amounts and obligations in question.

Lil-Lets seeks to have a transparent and constructive relationship with HMRC during communications in respect of developments in Lil-Lets UK Ltd’s business, current, future and retrospective tax risks, and interpretation of the law in relation to all relevant taxes.

Lil-Lets ensures that HMRC is kept aware of significant transactions and changes in the business and seeks to discuss any tax issues arising at an early stage. When submitting tax computations and returns to HMRC, Lil-Lets discloses all relevant facts and identifies any transactions or issues where it considers that there is potential for the tax treatment to be uncertain.

Any inadvertent errors in submissions made to HMRC are fully disclosed as soon as reasonably practicable after they are identified.

• Lil-lets UK Limited
• Lil-Lets Group Limited
• Lil-Lets Loan Company Limited
• Lil-Lets Holdings Limited