The Harrods Group refers to Harrods Group (Holdings) Limited and its wholly owned subsidiaries, which is principally a UK tax resident group.
This document has been approved by the Board of the Harrods Group, as of 11th January 2019.
The purpose of this document is to set out the Harrods Group’s strategy with respect to conducting its tax matters and approach to tax risk in the UK. We consider that the statement below complies with the Harrods Group’s obligation under para 16(2) and para 25(1), Sch. 19 Finance Act 2016 for the year ended 31st January 2019.
This document is available to all of the Harrods Group’s stakeholders. It will be reviewed on a periodic basis, with any subsequent amendments approved by the Board of the Harrods Group.
Approach to Risk Management and Governance Arrangements
The Harrods Group’s finance team is responsible for preparing and reviewing PAYE and VAT returns. Annual corporation-tax returns are prepared by external tax advisers for review by the finance team. The Harrods Group’s internal audit team is responsible for the audit and assessment of internal procedures and controls.
Where complex matters or potential issues arise or are identified, appropriate external advice is sought. The full Board of the Harrods Group is involved in all significant transactions and informed of its associated tax implications.
Attitude to Tax Planning
The Harrods Group is committed to observing all applicable laws, rules, reporting and disclosure requirements, while at the same time ensuring that the tax cost to the Group is effectively managed.
The Harrods Group has a low risk appetite and does not use marketed tax-avoidance schemes or arrangements that do not comply with current regulations. As such, the Harrods Group takes a considered approach to tax planning, and judgements of risk are made with appropriate professional/legal advice.
Risk Acceptance in Relation to UK Taxation
The Harrods Group proactively seeks advance clearance or agreement of complex matters with HMRC. In the case of a dispute, the Harrods Group would aim to actively engage with HMRC as soon as possible to efficiently resolve the disputed item.
Approach to Dealing With HMRC
As a large business in the UK within the UK tax authority’s Large Business directorate, the Harrods Group is assigned a customer compliance manager (CCM) within HMRC. The Harrods Group advocates a cooperative and compliant approach with its CCM, communicating on a regular basis through various media. Because of this, the Group welcomes open and transparent discussions with HMRC.
Where applicable, the Harrods Group aims to enter into early discussions with HMRC to explain and reach agreement on current tax issues. This is with a view to achieving certainty on its tax position.
Where can I find Harrods’ MSA Statements and Supplier Code of Conduct?
You can read these documents by following the links below: