This UK tax strategy is published in accordance with the requirements set out in Schedule 19 of Finance Act 2016. This tax strategy, which has been approved by the Board of Directors, is effective for the year ending 31 December 2023.
Approach to Tax Risk Management
Weidmuller Limited (‘company’ / ‘Weidmuller UK’) is the UK sales company and subsidiary of the international Weidmuller group (‘Group’) which has its headquarters in Germany. The company’s principal activity is that of the distribution of electrical terminals, associated interfaces and control products, to both the UK and Republic of Ireland.
The company has four dormant subsidiaries as follows:-
Weidmuller UK aims and strives for its tax affairs to be fully compliant with the UK legislation and to that effect, the UK Board of Directors, which includes the Group Chief Financial Officer, are committed to maintaining tax compliance on an ongoing basis.
The ultimate responsibility for tax strategy and managing tax risk in the UK lies with the Group Head of Finance, Tax and Treasury. As this individual has little day to day involvement in the tax matters of the UK business, this role is supported by the Head of UK Finance and Services.
Weidmuller UK has appointed an external firm of professional tax advisers to assist with the preparation and submission of Corporation Tax returns and computations. The business relies upon these advisers to make them aware of relevant new and/or updated tax legislation in order to reduce the risk of any inadvertent non-compliance.
The payroll function is outsourced to payroll specialists, and the company similarly relies upon them to make the company aware of changes to the tax legislation which may be applicable.
VAT returns are prepared internally in a Making Tax Digital compliant manner. This is undertaken by appropriately qualified and experienced staff who are responsible for keeping up to date with legislative changes to ensure compliance is maintained and that internal policies and procedures are updated accordingly.
Attitude to Tax Planning
Under the Group’s code of conduct, the business is committed to considering the economic (including taxation), technological, social and environmental impacts of its business decisions and actions. Further to this, the company seeks to maintain an appropriate balance of all stakeholder interests whilst upholding its key ethical values and principles of integrity, honesty and respect of human dignity.
The individuals responsible for tax matters are expected to adopt and uphold the aforementioned approach when dealing with the tax matters of the company.
The company aims to claim appropriate tax reliefs in line with the UK legislation, however only as these apply to the business’ commercial operations and circumstances as they exist. The company does not seek to interpret the legislation in a way which opposes the spirit in which it was intended.
Very little, if any, tax planning is undertaken by the company or by the Group as a whole. Nonetheless, should any tax planning be considered, it would be at Group level. Correspondingly, the company’s attitude to tax planning entails it not entering into aggressive transactions where the main purpose is to gain a tax advantage.
Level of Tax Risk for UK Taxation
Weidmuller UK adopts a low-risk approach to tax, which is managed by their main goal to be fully tax compliant with the UK tax legislation in all regards. Internal procedures are updated as necessary to minimise risks and support the drive to achieve and maintain this goal.
The company’s focus is on delivering accurate tax returns to HMRC to ensure the correct amount of tax is paid, at the right time.
The main tax risk area identified is that of transfer pricing, which imposes a requirement to ensure that pricing within the international group is on an arm’s length basis. Correspondingly, transfer pricing reviews are undertaken on an annual basis by the parent company in Germany to manage and minimise this risk, ensuring the correct amount of tax is paid in the correct jurisdiction.
Approach to working with tax authorities
Weidmuller UK aims to satisfy the necessary filing and payment requirements in accordance with the deadlines.
When dealing with HMRC, the company seeks to ensure this interaction is professional, open and transparent, in line with their ethical values and principles in relation to communication as contained within the code of conduct. It aims to provide full support and assistance in dealing with any queries raised by HMRC.
