Principal operations and document scope:
We strive to be effective and efficient in everything we do. We want Bradford to be a safe, child-friendly and supportive city where every child matters and can grow up and thrive. Our approach to tax seeks to support this vision in a responsible manner.
The principal taxes paid by BCFT are payroll taxes, VAT and Corporation Tax subject to any exemptions as a non trading organisation.
Governance and approach to risk management
Our tax strategy is governed by the Audit and Risk Committee on behalf of the Board, which has ultimate responsibility for the Trust tax affairs. Day-to-day responsibility for implementing the strategy rests with our Finance and Resources Director. The Finance and Resources Director updates the Audit and Risk Committee on any changes to tax compliance as part of the reporting cycle and on an ad hoc basis if the need arises. To meet our compliance obligations, the Finance and Resources Director is supported by in-house accounting professionals, in addition to having access to external specialist Tax and Accounting support.
BCFT actively seeks to identify, evaluate and manage all tax risks; controls and processes have been implemented to ensure that the likelihood of risks materialising, and their impact are minimised. When there is significant uncertainty or in particularly complex cases, external advice may be sought.
Attitude towards tax planning
BCFT will seek to utilise only the reliefs and incentives that are available to us in accordance with our activities, and any resulting savings are reinvested in BCFT’s core activities. BCFT does not engage in aggressive tax planning. We seek to identify, declare and pay on a timely basis all amounts properly owing to HMRC.
The level of risk BCFT is willing to accept in relation to UK taxation
Our approach to tax risk follows the same principles that apply to other risks to which BCFT is exposed. Our appetite for the risks that BCFT is exposed to is assessed and we have a minimal risk appetite for tax risk. Maintaining our reputation with stakeholders and being a responsible organisation are key considerations in assessing risk and we will always seek to do the right thing to this end. Although our assessment of risk will inevitably also take into account the materiality of any item, we do not set defined limits on what is acceptable risk.
Approach to working with HMRC
BCFT seeks to engage an honest, open and constructive relationship with HMRC in relation to all tax affairs. All dealings with HMRC are conducted in a professional manner and we aim to avoid unnecessary disputes with HMRC. Where necessary, formal or informal clearance will be sought from HMRC on uncertain tax positions, and we endeavour to share all relevant information with HMRC.
The Finance and Resources Director takes account of HMRC’s own risk-based approach to compliance and BCFT seeks to be viewed by HMRC as always being transparent and acting with integrity, and therefore as “low risk”.