Tax strategy
Tax Strategy – March 2024
Hako Machines Limited is a wholly owned subsidiary of the Possehl-Group which sells and distributes cleaning machines and parts throughout the United Kingdom.
The company was established in 1979 and currently has 75 employees.
Hako Machines Ltd turnover was £19.332m in FY 2023 and is forecast to be £19.725m in FY 2024.
Legislation
Hako Machines Limited complies with Part 2 of Schedule 19 of the Finance Act 2016 – paragraph 19 – UK sub-groups: duty to publish a sub-group tax strategy.
Financial Year the strategy relates to
31st December 2024.
Managing UK tax risks
PAYE is operated through a payroll service provider TopSource Worldwide.
Tax and National Insurance is reported monthly and at the end of the tax year by Top Source and the finance team ensures monthly payment to HMRC is made on time.
A monthly accrual is made for Class 1A NIC and the P11Ds are prepared by the finance team using the HR and Fleet Managers to sense check data used in their preparation – and submitted using the Government Gateway with payment made by the deadline set by HMRC.
VAT is reported from the accounting system SAP.
A Payments on Account Schedule is published yearly by HMRC and sent to Hako Machines Limited.
The finance team ensure these monthly (and remaining balance) payments are made on time each month.
The VAT Return is submitted via 123 Sheets, MTD VAT Software.
All of Hako Machines’ customs clearance requirements are handled by Espace Intelligent Freight.
Corporation Tax payments on account are advised by our tax consultants BDO who ultimately file our Corporation Tax Return and Computation.
These taxes are all reconciled when month end accounts are prepared by the finance team.
Attitude to Tax Planning
The primary objective from this perspective is to ensure we are compliant with all tax legislation and the requirements published therein.
Included in this will be to ensure all applicable returns are made on a timely and accurate basis, but at the same time ensuring, where applicable, any tax paid has been assessed for any concessions or reliefs which are allowed under the relevant legislation.
With this in mind, we do not seek to take an aggressive stance in interpretation of tax legislation, and the policy is to operate within both the spirit and the letter of the law.
We do not use any artificial tax avoidance schemes, tax havens, or management incentive programs linked to any aspect of tax mitigation or determining an effective tax rate.
Level of risk Hako Machines is prepared to accept for UK taxation
Taxation is a complex subject, and Hako Machines Ltd does not employ specifically trained personnel in respect of tax.
Therefore, in order to ensure compliance, external support from tax advisers will be engaged to assist in the review and completion of specific aspects of tax, however the overall responsibility for tax policy and reporting lies with the Financial Controller.
The overall level of risk is very low due to our stringent processes of ensuring all taxes are accurately calculated and paid on time.
How Hako Machines Limited works with HMRC
Hako Machines Limited understands the need for good co-operation and a strong working relationship with HMRC and other relevant government departments and seeks to have open and honest communication in this respect.
As and when required, we comply with any request for additional information to support returns made and liaise with the relevant HMRC department on tax matters as and when the need arises.
Any other relevant information relating to taxation
As a member of a large European Multi-National Enterprise, Hako Machines Limited also adheres to the OECD CbCR framework, submitting relevant information for publication to the tax authority in the country where the group holding company is based.
Alongside this, any transactions which occur between members of the same group respect the arm’s length principle with regard to pricing.