M.K.M. Building Supplies (Group) and limited subsidiaries tax strategy (year ending 30th September 2020)
This strategy applies to the group of companies headed by M.K.M. Building Supplies (Group) Limited in accordance with paragraph 19 of Schedule 19 to the Finance Act 2016. A list of the active entities to which it applies is set out in the appendix. In this strategy, references to ‘MKM Group’ or ‘the Group’ are to these entities. This strategy applies from the date of publication until it is superseded.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.
MKM Building Supplies are the UK’s largest independent builders’ merchant, with over 70 branches across England and Scotland including MKM Leisure, a specialist distributor for the caravan and holiday homes industry.
We aim to be a ‘one stop shop’ for building, timber and plumbing supplies, and stock a wide range of products from the industry’s leading manufacturers - all at competitive prices.
We hold high levels of stock on-site to ensure both our customers in the building trade and the general public can get what they need, when they need it. We also offer a free, reliable local delivery service to help your projects run smoothly.
See our About us page for more information.
The Group pays in its own right and collects from third parties on behalf of the Government, substantial amounts of UK tax and these are remitted to the UK exchequer as they fall due. The Group’s objectives in managing and controlling its tax affairs and related tax risks are to:
- Ensure compliance with all applicable rules, regulations and disclosure requirements under which the Group operates
- Develop and maintain an open and co-operative relationship with the tax authorities it deals with
- Be transparent about its dealings with these tax authorities
- Pay the correct amount of tax as it falls due
- Maintain appropriate systems, processes and controls to ensure the correct calculation and recording of tax liabilities and receivables
- Protect its reputation as a responsible UK tax payer
The approach to tax risk management and governance arrangements
The Group seeks to protect its reputation as a responsible corporate citizen by ensuring that it acts in accordance with the letter and the spirit of current tax legislation so that it pays the right amount of tax when it falls due. The level of risk which the Group accepts in relation to UK taxation is consistent with its overall objective of achieving certainty in the group’s tax affairs.
The Group takes a conservative approach to tax risk:
- MKM 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
- Advice is sought from external advisers where appropriate. External tax advisers are used for tax compliance matters. The Group also uses external advisors to assist in determining the tax consequences of significant transactions
The Board of MKM Group is responsible for the Group’s tax strategy and policies, with the Group’s Finance Director having delegated responsibility for their implementation. Also, as the senior accounting office (SAO), the Group Finance Director reports on tax compliance within the group to the audit committee and ultimately the Board.
All returns and other submissions are prepared by either third party advisors or internally trained employees and checked by Finance Director (or another appropriate qualified individual) before filing.
The attitude of the Group towards tax planning
MKM Group manages risks to ensure compliance with legal requirements in a manner which ensures payment of the right amount of tax.
The Group recognises its responsibility to optimise overall returns to its investors in its recommendation of the way commercial or business opportunities should be implemented, however in doing so always aims to be a transparent and responsible tax payer.
At all times MKM Group 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.
Level of risk
We consider that we have a low tolerance for tax risk and we seek to minimise the risk of uncertainty and tax disputes.
Working with HMRC
As the Group is a large business, a HMRC Customer Compliance Manager (CCM) co-ordinates HMRC’s relationship with the Group. HMRC is periodically updated on developments of the Group and supplied with any information required on a timely basis.
It is the Group’s policy to deal with HMRC in an open, professional and mutually respectful manner and where a tax issue arises we seek resolution with HMRC in as efficient a manner as possible.
The Group approach to tax applies to all Group entities, outlined in this listing of companies, and transactions it enters into with third parties outside the Group.
Approved in January 2020 by Mark Smith (Finance Director) on behalf of Board of Directors of M.K.M. Building Supplies (Group) Limited (on behalf of it and its UK subsidiaries), in accordance with paragraphs 19(2) Schedule 19 Finance Act 2016.
For any further questions about our Tax Strategy, please contact our Finance Director, Mark Smith at firstname.lastname@example.org.