Contactum Limited (“Contactum”) manufactures and sells electrical wiring accessories, circuit protection and control equipment. The company employs approximately 69 people across two locations in the UK.
This statement outlines the UK tax strategy of Contactum including the approach to tax risk management and
governance, the attitude towards tax planning, the level of tax risk accepted and a description of the company’s relationship with HMRC.
The publication of this statement is considered to fulfil the company’s obligations under Paragraph 22(2) Schedule 19 Finance Act 2016 for the financial year ended 31 December 2021. This tax strategy is intended to provide a clear and accurate outline of the company’s approach to all aspects of tax reporting and compliance.
This tax strategy is owned and approved by the Board of Directors of Contactum.
Approach to tax risk management and governance
The company is trading and is therefore subject to a range of UK taxes on its activities. The Board of Directors of Contactum is committed to fulfilling its UK tax obligations through compliance with all UK tax law, regulation and disclosure requirements. This commitment includes:
- paying the right amount of tax at the right time;
- filing complete and accurate returns on a timely basis;
- seeking to utilise available tax reliefs and incentives where available in a manner which is in line with government policy; and
- working with professional advisers in the UK to ensure compliance with UK tax law and practice.
The overall responsibility for the tax strategy of Contactum rests with the Board of Directors. The day to day
management of the company’s tax affairs is undertaken by the company’s finance team.
The company takes a responsible approach to managing its tax affairs and seeks to comply with all statutory
obligations. Third party advice is sought where it is considered appropriate; typically, where there is a material level of uncertainty or complexity.
The company’s approach to tax risks follows the same principles that apply to other business risks and includes
consideration of reputational and other non-financial risks. By being tax compliant the company aims to minimise tax risk.
Level of tax risk accepted
The company will only accept a low level of risk. The scale and complexity of the Contactum business and the volume of our tax obligations, means that inevitably risks will arise. We ensure that where risks do arise, they are identified, evaluated, and managed proactively in an open and ethical way. For certain transactions where there is a material level of uncertainty or complexity, we will seek external advice to help reduce risk.
Attitude towards tax planning
When structuring commercial activities and arranging transactions, Contactum always considers the tax laws of the countries that it operates in. The company does not participate in artificial tax avoidance schemes to reduce its UK tax liability. The company only partakes in transactions that relate to genuine commercial activity with economic substance.
The company does not seek to structure transactions in ways that give tax results inconsistent with its underlying economic consequences. Any tax planning undertaken will have commercial and economic substance and will have regard to the potential impact on our reputation and broader goals.
The company does not take an unreasonable stance on interpretation of tax legislation and strives to work within both the letter and spirit of local laws.
Relationship with HMRC
Contactum does not have a Customer Compliance Manager or other dedicated contact with HMRC but acts
collaboratively in an open and transparent manner in all dealings with HMRC.
The company complies with all applicable tax laws and regulations, maintaining an open and honest dialogue in all dealings with HMRC. In the event of a disagreement with HMRC, Contactum aims to resolve disputes in a timely manner through the provision of full and accurate answers to queries, open and honest dialogue and the willingness wherever possible to reach an agreement without recourse to litigation.
If faced with any uncertainty as to the application of certain tax laws, a proactive approach of engaging with HMRC in advance of undertaking any transactions may be adopted to confirm the correct application of tax law.
This strategy is owned and approved by the Boards of Directors of Contactum Limited.
22nd March 2022